Financial crisis will see a rise in white-collar crime

News by SC Staff

Fraud is expected to rise as the credit crunch continues.

Fraud is expected to rise as the credit crunch continues.

 

According to the Kroll Global Fraud Report, it expects to see an increase in full-scale fraud investigations involving legal disputes, regulatory action and prosecution in 2009 as whistleblowing also becomes more common.   

 

Blake Coppotelli, senior managing director in Kroll's business intelligence and investigations practice, said: “In difficult economic conditions, businesses are struggling to compete for fewer business opportunities.

 

“This creates more incentives to deviate from proper business practices and engage in fraudulent activities to protect and maintain revenue. We saw a marked increase in the number of corporate fraud cases during the market downturns of 1987, 1991 and 2001.”

 

Richard Abbey, managing director in Kroll's business intelligence and investigations practice, said: “Comprehensive due diligence – not a cursory ‘check-the-box' review – is the key to managing exposure to these threats through the downturn. Companies should not think that they are safer in certain country markets – this is a global concern that spans all industries.”

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