Fraud in Australia

Fraud in Australia is a major risk to small to large businesses. Many fraud cases go unnoticed in small companies, however sometimes the frauster gets caught and a case is bought forward. In large organisations the consequences of fraud cases is much more severe as experienced by Queensland Health and ING. These large companies experienced fraud, which went undetected for 5 years. For more information on these two cases, see the video and the further readings section below.

According to KPMG's Fraud Barometer (2012) just over $1 billion in fraud associated losses was reported over four years from 2008 to 2011. Additionally the average size of fraud of fraud has been getting larger and taking longer to detect which amounted to an average fraud committed amount to $1.8 million during the four year recording period. Figure 1 below highlights some of the major frauds in Australia between 2008 and 2011, while Figure 2 highlights the common perpetrators of fraud, being management. 

Figure 1: Major Frauds in Australia between 2008-2011 - KPMG Fraud Barometer

Figure 2: Common Perpetrators of Fraud in Australia between 2008-2011 - KPMG Fraud Barometer

Below are some articles which examine fraud in Australia:

KPMG. (2010). Fraud and misconduct survey 2010 Australia and New Zealand. Retrieved from: https://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Fraud-Survey/Documents/Fraud-and-Misconduct-Survey-2010.pdf

KPMG. (2012). Is fraud the silent partner in your business? Fraud Barometer Ed 6. Retrieved from: http://www.kpmg.com/AU/en/IssuesAndInsights/ArticlesPublications/Fraud-Barometer/Documents/fraud-barometer-december-2011.pdf

Pricewaterhousecoopers. (2012). Cybercrime: out of obscurity and into reality, 6th PWC global economic crime survey. Retireved from: http://www.pwc.com.au/assurance/risk-controls/assets/Global-Economic-Crime-Mar11.pdf

Pricewaterhousecoopers. (2008). Fraud, A guide to its prevention, detection and investigation. Retireved from: http://www.pwc.com.au/assurance/risk-controls/assets/FraudControl_Jul08.pdf

Warfield, B. (2011). Fraud in Australia. Retireved from: http://www.warfield.com.au/Bookkeeping_Fraud_in_Australia_2005-2011.pdf

Further Readings on Queensland Health and ING case:

Bibby, P. (2012, February 16). ING takes $30m hit in accountancy fraud case. Brisbane Times. Retrieved from: http://www.brisbanetimes.com.au/business/ing-takes-a-30m-hit-in-accountancy-fraud-case-20120215-1t6ru.html#ixzz1mVMJtuZ9

Remeikis, A. (2011, December 9). Bligh demands answers over $16m Queensland Health fraud. The Sydney Morning Herald. Retireved from: http://www.smh.com.au/national/bligh-demands-answers-over-16m-queensland-health-fraud-20111209-1onls.html 

Wardill, S. (2011, December 14). Three senior Queensland Health officials stood down over $16m scam. The Courier Mail. Retrieved from: http://www.couriermail.com.au/news/queensland/three-health-officials-stood-down-over-16m-scam/story-e6freoof-1226221731601