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Fraud in construction sector rises in 2016

Report reveals that 70% of executives in the industry worldwide reported experiencing a fraud incident last year, while 77% have experienced cyber incidents

NEWS, Business, 2016, Construction sector, Fraud, Risk, The 2016/17 Kroll Annual Global Fraud and Risk Report

Businesses in the construction, engineering and infrastructure sectors have seen an increase in fraud and risk incidents in 2016, a new report has found.

The 2016/17 Kroll Annual Global Fraud and Risk Report reveals that 70% of executives in the industry worldwide reported experiencing a fraud incident last year, while 77% have experienced cyber incidents.

Around two-thirds of respondents in the sector, or 63%, reported at least one security incident over the course of the year.

Tommy Helsby, Co-Chairman, Kroll Investigations & Disputes, said: “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.

“The impact of such incidents is significant, with punitive effects on company revenues, business continuity, corporate reputation, customer satisfaction, and employee morale.”

The findings also reveal that across all sectors, the most common perpetrators of fraud, cyber, and security incidents over the past 12 months were current and former employees.

“Fraud, cyber, and security incidents are now the ‘new normal’ for construction, engineering and infrastructure companies across the world,” the report added.

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