28/07/2010 - Businesses in Europe hit by fraud
Nearly a quarter of businesses in western Europe have been affected by serious fraud over the past two years, a global survey has revealed.
The survey showed that 21% of businesses in western Europe suffered serious fraud or corruption during the period.
This figure compares with just 16% of companies across the world.
Around 85% of company bosses are concerned that board members are worried about finding themselves at risk of fraud or corruption in the company.
Some 70% of companies were asked to provide details of any internal investigations into fraud, bribery or corrupt practices in the last 12 months, according to the Ernst & Young study.
Julie Fenton, Ernst & Young's fraud investigations partner, said the figures are unsurprising given the credit crunch and recession.
"There has been increased pressure on businesses and board members to maintain financial results in difficult conditions which has encouraged new frauds, whilst companies have been forced to take a closer inspection of costs, leading to the uncovering of pre-existing fraud schemes," Ms Fenton said.
But the survey found that as a result of board members being more risk-averse, businesses appear better prepared to manage fraud in key areas.
Copyright © Press Association 2010
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