PracticeAccounting FirmsKPMG warns of heightened fraud risks

KPMG warns of heightened fraud risks

KPMG warns the economic downturn is bringing heightened fraud risks

Alex Plavsic,
KPMG Forensic head
of fraud investigations, warns the latest developments in the economy and the
downturn are bringing a heightened risk of fraud, affecting his clients.

‘The pressure to hit targets that have become harder to meet increases the
possibility of accounts manipulation and the booking of false revenues. Personal
financial pressures could also lead to a wider incidence of individual insider
frauds,’ he says.

He warns also that organised crime rings will be ‘icking hard against a
downturn’. They know there is a price at which they can buy the services of some
employees in order to gain access to customer and fiancial information.

‘Companies need to get the balance right between control and openness.
Segregate data wherever possible, so that no one has access to more information
than they actually need to do their job,’ Plavsic says. ‘At the same time,
ensure there are no personal fiefdoms in the business and that reporting lines
are open and transparent.’
Further reading:

FSA urges clampdown on bogus brokers

Fraud-as-a-service looms over firms

Related Articles

Productive accountancy firms lead the way

Accounting Firms Productive accountancy firms lead the way

8h Simon Adcock, HSBC
LLPs in Top 50+50: Will LLPs continue to be the preferred set-up?

Accounting Firms LLPs in Top 50+50: Will LLPs continue to be the preferred set-up?

1d Fergus Payne, Lewis Silkin
BDO’s global revenues pass $8bn

Accounting Firms BDO’s global revenues pass $8bn

1w Alia Shoaib, Reporter
Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

Accounting Firms Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

1w Philip Smith, Reporter
Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

Accounting Firms Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

2w Emma Smith, Managing Editor
BDO reports revenue growth of 5.7%

Accounting Firms BDO reports revenue growth of 5.7%

2w Alia Shoaib, Reporter
Taylorcocks announces merger with Surrey firm

Accounting Firms Taylorcocks announces merger with Surrey firm

2w Emma Smith, Managing Editor
Kingston Smith reports 7% gender pay gap

Accounting Firms Kingston Smith reports 7% gender pay gap

2w Emma Smith, Managing Editor