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 2, 2016
Nonresidential spending inches lower in July while June data is upwardly revised to eight-year record
Nonresidential construction spending has been suppressed over the last year or so with the primary factor being the lack of momentum in public spending.
Industry Research | Sep 1, 2016
CannonDesign releases infographic to better help universities obtain more R&D funding
CannonDesign releases infographic to better help universities obtain more R&D funding.
Industry Research | Aug 25, 2016
Building bonds: The role of 'trusted advisor' is earned not acquired
A trusted advisor acts as a guiding partner over the full course of a professional relationship.
Multifamily Housing | Aug 17, 2016
A new research platform launches for a data-deprived multifamily sector
The list of leading developers, owners, and property managers that are funding the NMHC Research Foundation speaks to the information gap it hopes to fill.
Hotel Facilities | Aug 17, 2016
Hotel construction continues to flourish in major cities
But concerns about overbuilding persist.
Market Data | Aug 16, 2016
Leading economists predict construction industry growth through 2017
The Chief Economists for ABC, AIA, and NAHB all see the construction industry continuing to expand over the next year and a half.
Multifamily Housing | Aug 12, 2016
Apartment completions in largest metros on pace to increase by 50% in 2016
Texas is leading this multifamily construction boom, according to latest RENTCafé estimates.
Market Data | Jul 29, 2016
ABC: Output expands, but nonresidential fixed investment falters
Nonresidential fixed investment fell for a third consecutive quarter, as indicated by Bureau of Economic Analysis data.
Industry Research | Jul 26, 2016
AIA consensus forecast sees construction spending on rise through next year
But several factors could make the industry downshift.
Architects | Jul 20, 2016
AIA: Architecture Billings Index remains on solid footing
The June ABI score was down from May, but the figure was positive for the fifth consecutive month.