According to the Kroll Annual Global Fraud and Risk Report 2016/17, construction, engineering, and infrastructure companies around the globe are experiencing fraud, cyber, and security incidents so frequently it has become the “new normal.”
Seven of the 10 executives in the sector surveyed in the report said their company fell victim to fraud in the past year with vendor, supplier, or procurement fraud being the most prevalent kind of fraud suffered at 28%. Internal financial fraud followed at 21%, and corruption and bribery, theft of physical assets, and misappropriation of company funds were next with each one being reported by 19% of respondents.
Cyber attacks became increasingly common in 2016, as well. 77% of respondents reported their company suffered a cyber incident in the past 12 months with a virus or worm infestation being the most common at 35%. Email based phishing attacks were the next most common at 30%.
“This year’s Kroll Global Fraud and Risk Report shows that it’s becoming an increasingly risky world, with the largest ever proportion of companies reporting fraud and similarly high levels of cyber and security breaches,” said Tommy Helsby, Co-Chairman, Kroll Investigations & Disputes, in a press release.
Often, companies worry about attacks originating from external sources, but according to the report, across all sectors, the most common perpetrators of fraud, cyber, and security incidents in 2016 were current and former employees. On the reverse side, insiders were also the most likely people to discover fraud occurring. 44% of respondents across all sectors said a recent fraud has been discovered through a whistleblowing program. Additionally, 39% said it was detected through an internal audit.
You can receive a full copy of the report by clicking here.
Related Stories
Market Data | Mar 14, 2019
Construction input prices rise for first time since October
Of the 11 construction subcategories, seven experienced price declines for the month.
Market Data | Mar 6, 2019
Global hotel construction pipeline hits record high at 2018 year-end
There are a record-high 6,352 hotel projects and 1.17 million rooms currently under construction worldwide.
Market Data | Feb 28, 2019
U.S. economic growth softens in final quarter of 2018
Year-over-year GDP growth was 3.1%, while average growth for 2018 was 2.9%.
Market Data | Feb 20, 2019
Strong start to 2019 for architecture billings
“The government shutdown affected architecture firms, but doesn’t appear to have created a slowdown in the profession,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD, in the latest ABI report.
Market Data | Feb 19, 2019
ABC Construction Backlog Indicator steady in Q4 2018
CBI reached a record high of 9.9 months in the second quarter of 2018 and averaged about 9.1 months throughout all four quarters of last year.
Market Data | Feb 14, 2019
U.S. Green Building Council announces top 10 countries and regions for LEED green building
The list ranks countries and regions in terms of cumulative LEED-certified gross square meters as of December 31, 2018.
Market Data | Feb 13, 2019
Increasingly tech-enabled construction industry powers forward despite volatility
Construction industry momentum to carry through first half of 2019.
Market Data | Feb 4, 2019
U.S. Green Building Council announces annual Top 10 States for LEED Green Building in 2018
Illinois takes the top spot as USGBC defines the next generation of green building with LEED v4.1.
Market Data | Feb 4, 2019
Nonresidential construction spending dips in November
Total nonresidential spending stood at $751.5 billion on a seasonally adjusted annualized rate.
Market Data | Feb 1, 2019
The year-end U.S. hotel construction pipeline continues steady growth trend
Project counts in the early planning stage continue to rise reaching an all-time high of 1,723 projects/199,326 rooms.