16 January 2008 | Jake Kanter
Fears over an economic downturn could result in the increase of corporate fraud, according to a report from researchers at KPMG.
After the last major economic recession in the early nineties, cases of fraud in the UK increased rapidly and KPMG warned that history may repeat itself.
Alex Plavsic, head of fraud investigations at KPMG, explained: "Our analysis shows that in times of economic slowdown, when belts are tightened and processes are committed to greater scrutiny, more high value frauds have tended to be uncovered. If the current credit crunch does lead to a slowdown through 2008, we may see the detection of some high value frauds in its wake."
In a report last year the organisation revealed procurement employees are responsible for 9 per cent of company fraud (Web news, 4 May 2007).