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 6, 2016
Real estate execs measure success by how well they manage ‘talent,’ costs, and growth
A new CBRE survey finds more companies leaning toward “smarter” workspaces.
Market Data | Mar 1, 2016
ABC: Nonresidential spending regains momentum in January
Nonresidential construction spending expanded 2.5% on a monthly basis and 12.3% on a yearly basis, totaling $701.9 billion. Spending increased in January in 10 of 16 nonresidential construction sectors.
Market Data | Mar 1, 2016
Leopardo releases 2016 Construction Economics Report
This year’s report shows that spending in 2015 reached the highest level since the Great Recession. Total spending on U.S. construction grew 10.5% to $1.1 trillion, the largest year-over-year gain since 2007.
Market Data | Feb 26, 2016
JLL upbeat about construction through 2016
Its latest report cautions about ongoing cost increases related to finding skilled laborers.
Market Data | Feb 17, 2016
AIA reports slight contraction in Architecture Billings Index
Multifamily residential sector improving after sluggish 2015.
Market Data | Feb 11, 2016
AIA: Continued growth expected in nonresidential construction
The American Institute of Architects’ semi-annual Consensus Construction Forecast indicates a growth of 8% in construction spending in 2016, and 6.7% the following year.
Market Data | Feb 10, 2016
Nonresidential building starts and spending should see solid gains in 2016: Gilbane report
But finding skilled workers continues to be a problem and could inflate a project's costs.
Market Data | Feb 9, 2016
Cushman & Wakefield is bullish on U.S. economy and its property markets
Sees positive signs for construction and investment growth in warehouses, offices, and retail
Market Data | Feb 5, 2016
CMD/Oxford forecast: Nonresidential building growth will recover modestly in 2016
Increased government spending on infrastructure projects should help.
Market Data | Feb 4, 2016
Mortenson: Nonresidential construction costs expected to increase in six major metros
The Construction Cost Index, from Mortenson Construction, indicated rises between 3 and 4% on average.