The 2015 Kroll Global Fraud Report polled over 750 senior executives worldwide. The findings show 72% of professional services firms reported instances of fraud, with the most common type being corruption and bribery, experienced by 22%, a higher level compared to other industries.

This was followed by internal financial fraud (14%), also the highest figure of any sector, and information theft (13%). Money laundering (9%) and theft of physical assets (7%) came lower down the list.

Four in five respondents in the sector (81%) say their exposure to fraud has increased, with the biggest drivers of increased exposure to fraud cited as high staff turnover (20%) and increased outsourcing and offshoring (19%).

The data suggests that the sector’s anti-fraud efforts need to address possible senior and middle management conduct. Professional services firms have above average levels of management conflict of interest (13%) and over half of firms (52%) report themselves moderately or highly vulnerable to that fraud – again the highest in the survey.

Similarly, the sector is unusual in being one of only two surveyed where senior and middle management are more likely than junior employees to commit fraud.

Tommy Helsby, chairman, Kroll, said: ‘Much media attention is focused on external threats to companies, highlighted by high profile cyber attacks, but the evidence revealed in our report and our day-to-day experience tells a different story.

‘The respondents in this survey indicate the greatest single cause of fraud in their companies is their own employees. It is not enough for companies to protect themselves from outside threats – both external and internal vulnerabilities need to be addressed.’

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