According to the first-ever study analyzing actual fraud cases revealed that the fraudster tend to exploit the inadequate internal control for their own benefit resulting in substantial damage for the company.

The typical fraudster is male, between 36 and 55 years old. The company would have employed him for six or more years. He works in the financial department, and commits the deed alone, the report said.

KPMG said in a statement that the report was the result of study of typical financial fraudsters. The forensic departments of KPMG in Europe, the Middle East, India and Africa examined and studied 360 actual fraud cases.

Talking about the findings of the report, Deepankar Sanwalka, executive director and head of KPMG Forensic in India, said, "Over 60 per cent of the perpetrators are members of top management. Senior managers have access to confidential information, and due to their position, it is easier for them to bypass internal controls and inflict greater damage to the company overall."

"Both large and small businesses can be affected by this and suffer considerable material and immaterial losses," Sanwalka added.

The study revealed that 91 per cent of the cases have committed several offences. In India and Middle East, corruption accounted for the most common fraud at 33 per cent followed by theft of cash and theft of other assets at 24 per cent and 17 per cent respectively. Additionally false financial reporting, embezzlement and kickbacks were also significantly common types of fraud that fraudsters committed.

Employees, authorities and media are rarely informed for fear of a negative image of the company. Consequently, offences only occasionally undergo criminal investigation, KPMG statement said.

"Prevention (such as introducing Ethics and Integrity measures including the top management level) is always a more efficient and cost-effective means," says Sanwalka.

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