KPMG also suggests that weak internal controls allow them to get away with such crimes and that “whistleblowing” is the most common way of frauds being detected. The study of 360 actual company fraud cases were investigated by KPMG as far a field as Europe, the Middle East and Africa.

Among the cases KPMG analysed, in Europe the highest proportion occurred in the public sector (29 percent), with the rest evenly split among sectors such as industrials, communications and financial services. In Africa, 48 percent of cases were in the public sector, yet just 15 percent in the Middle East.

“Recoveries of losses from fraud can take several years to be completed. Prevention (such as introducing ethics and integrity measures at the top management level) is always a more efficient and cost-effective means,” said Richard Powell of KPMG.

So what does a fraudster look like? The survey suggests that a similar pattern travels across all geographical regions. Eighty five percent of fraudsters are male and the typical fraudster is aged between 36 and 55. By the time he starts acting illegally, he has usually been employed by the company for six or more years. He typically works in the finance department and commits the fraud single-handed. In 86 percent of cases he is at management level – and in two thirds of cases he is a member of senior management. “Greed” and “opportunity” are his motivating factors.

Worryingly, the typical fraudster commits multiple offences over an extended period of time before being detected. Fifty one percent commit twenty or more frauds, and a third commit more than 50. Two thirds commit frauds for between one and five years, and nearly one in ten get away with it for over six years. With the total financial loss caused per fraudster being more than 1m euros in 42 percent of cases, the financial toll on companies can be significant.

The financial damage inflicted by fraudsters can be severe and in many cases the affected companies have to bear the losses themselves. How sensitively the affected companies react to fraud is shown by the fact that two thirds issue incomplete information or none at all about the incident. The employees, authorities and media are rarely informed for fear of loss of image. Consequently, offences only occasionally undergo criminal investigation. Mostly, independent investigations are carried out without the police or the public authorities being informed.