Financial services companies lost an average of $12.9 million to fraud over the past three years, down from the $14.6 million reported by Kroll Global’s clients in the security firm’s annual survey of 900 enterprises (more than 100 financials).
The financial services trends actually run counter to the whole group, which found corporate fraud to be on the rise. Only 79 percent of the financial firms surveyed self-reported that they’d suffered from corporate fraud in the past three years, down from 83 percent last year, and compared to 85 percent of the group as whole this year.
Within financial services companies, the most common type of fraud was regulatory or compliance breach (35 percent), financial mismanagement (29 percent), management conflict of interest (25 percent), information theft, loss or attack (24 percent), and internal financial fraud or theft (24 percent). Compared to the group as a whole financials were more likely to be hit by financial mismanagement (29 percent vs. 22 percent) but less likely to suffer from theft of physical assets (27 percent vs. 37 percent).