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 | Sep 21, 2017
How brand research delivers competitive advantage
Brand research is a process that firms can use to measure their reputation and visibility in the marketplace.
Contractors | Sep 19, 2017
Commercial Construction Index finds high optimism in U.S. commercial construction industry
Hurricane recovery efforts expected to heighten concerns about labor scarcities in the south, where two-thirds of contractors already face worker shortages.
Multifamily Housing | Sep 15, 2017
Hurricane Harvey damaged fewer apartments in greater Houston than estimated
As of Sept. 14, 166 properties reported damage to 8,956 units, about 1.4% of the total supply of apartments, according to ApartmentData.com.
Hotel Facilities | Sep 6, 2017
Marriott has the largest construction pipeline of any franchise company in the U.S.
Marriott has the most rooms currently under construction with 482 Projects/67,434 Rooms.
Market Data | Sep 5, 2017
Nonresidential construction declines again, public and private sector down in July
Weakness in spending was widespread.
Market Data | Aug 29, 2017
Hidden opportunities emerge from construction industry challenges
JLL’s latest construction report shows stability ahead with tech and innovation leading the way.
Market Data | Aug 28, 2017
U.S. hotel construction pipeline is up 7% year-over-year
For the economy, the rate of growth may be low but it’s running on all cylinders.
Market Data | Aug 23, 2017
Architecture Billings Index growth moderates
“The July figures show the continuation of healthy trends in the construction sector of our economy,” said AIA Chief Economist, Kermit Baker.
Architects | Aug 21, 2017
AIA: Architectural salaries exceed gains in the broader economy
AIA’s latest compensation report finds average compensation for staff positions up 2.8% from early 2015.
Market Data | Aug 20, 2017
Some suburban office markets are holding their own against corporate exodus to cities
An analysis of mortgage-backed loans suggests that demand remains relatively steady.