Red alert, red alert: Company fraud on the rise in Singapore

Almost 3 in 10 got victimized.

Company issues are supposed to be no biggies, given the kind of professionalism Singaporeans uphold themselves with. Surprisingly though, 29% of employees admitted to having experienced fraud within their companies over the past 2 years.

According to KPMG-SMU Singapore Fraud Survey 2014 report, corporate fraud in Singapore is on the rise. The report suggests that 29 percent of the survey respondents experienced fraud incident within their organisation over the past two years, up from 22 percent in the 2011 survey. 

Here's more from the survey:

For the first time, the survey was carried out in conjunction with Singapore Management University. Internal fraud constituted 75 percent of fraud this year, up from 64 percent in 2011.

This was also the top concern in KPMG’s previous survey report in 2011. More than half (53 percent) of respondents identified that a combination of weak or over-ridden internal controls was the leading cause of fraud. 

The survey also found that employees formed the greatest proportion of perpetrators, jumping from 47 percent to 58 percent in this time period. Fraud incidents reported in 2014 involving board members and senior management officers remained unchanged from 2011 at 17 percent. 

Bob Yap, Head of Advisory at KPMG in Singapore said: “The increase in internal fraud since 2011 suggests that while many companies in Singapore already have anti-fraud controls in place, these controls are often inadequate.” 

He added: “With 58 percent of fraud being committed by employees, it is important to address this risk by setting a strong tone from the top – an organisation’s board of directors plays a critical role in the oversight of programmes to mitigate the risk of fraud and misconduct. The board, together with its management, is responsible for setting a moral tone and ensuring institutional support for ethical and responsible business practices at the highest levels of the organisation.”