Manufacturers less worried than other sectors about fraud

The figures for perceived vulnerability to corporate fraud within the manufacturing sector are generally about the same as the overall average, although in some instances they are slightly lower. Only in one area—procurement fraud—is vulnerability perceived to be higher than average (see graphic).
By Manufacturing Business Technology Staff January 1, 2008

The figures for perceived vulnerability to corporate fraud within the manufacturing sector are generally about the same as the overall average, although in some instances they are slightly lower. Only in one area—procurement fraud—is vulnerability perceived to be higher than average ( see graphic ).

Spending on the leading antifraud strategies also is less widespread in this field than among overall Kroll survey respondents, especially for IT measures (used at 59 percent of manufacturers against 70 percent overall); management controls (54 percent to 64 percent); and staff screening (48 percent to 57 percent).

Manufacturers have experienced higher-than-average incidences of several types of fraud, including theft of physical assets, corruption and bribery, financial mismanagement, and intellectual property theft or counterfeiting.

The loss per organization for this sector is slightly above average, as is the proportion of companies seeing at least one form of fraud in the past three years.