In a statement the company says it has been the victim of ‘a sophisticated criminal scheme related to a significant embezzlement and misappropriation of funds in its South Korean subsidiary.’

According to the statement: ‘The treasurer of the South Korean subsidiary is suspected of forging documentation and colluding with third parties to steal from the company.

‘The suspected individual went missing on February 7, 2017 and subsequently ABB discovered significant financial irregularities in South Korea.’

ABB said it has launched a full investigation in South Korea, which includes engaging independent forensic and legal specialists and collaborating with law enforcement authorities. It is working with the local police on the investigation and Interpol’s engagement.

ABB says the embezzlement and misappropriation of funds will have an impact on the previously reported unaudited 2016 results, with the current estimate being a pre-tax charge of approximately. $100m. As a consequence of the ongoing investigation, ABB will publish its 2016 annual report l by 16 March at the latest.

It is currently looking at recovery of the misappropriated funds, legal claims and insurances.

The company also says it has checked and reconfirmed the balances of its global bank accounts and can confirm that this situation is limited to South Korea.

Earlier this month, in a separate development, the Serious Fraud Office confirmed it has commenced an investigation into the activities of ABB Ltd’s UK subsidiaries, their officers, employees and agents for suspected offences of bribery and corruption.

This investigation is related to the SFO’s ongoing investigation into the activities of Unaoil, a Monaco-based firm which has been accused of corruptly securing contracts for dozens of multinationals.

An annual barometer of payment activity based on a poll of some 400 financial decision makers, published by Bottomline Technologies, found that 84% of mid to senior level finance staff admit to knowing how they can safely avoid their security systems and processes to commit internal fraud.

James Richardson, financial fraud expert at Bottomline Technologies, said: ‘If cyber-fraud is a hornet’s sting, financial fraud from within an organisation is a parasite.

‘ABB’s fraud won’t be the last.  It can happen to any company on the FTSE 100 and wider. Companies need to adopt a balanced stance protecting themselves against internal and external fraud. It’s not only the immediate loss of money. Internal fraud often attracts costly investigations, reputational damage and a process overhaul due to the complex nature of some of these incidents.’