Report reveals a high level of fraud in manufacturing sector

Nearly nine out of 10 manufacturing businesses have been affected by fraud in the past 12 months — more than any other industry sector — according to new figures from the Kroll Advisory Solutions Global Fraud Report.

Companies in the sector have seen a substantial increase in the incidence of fraud, with eight out of 10 categories of fraud tracked for the survey becoming more common this year.

Compared with other sectors, manufacturers experienced the highest levels of theft of physical assets (50 per cent), corruption and bribery (29 per cent), management conflict of interest (27 per cent), vendor or procurement fraud (23 per cent) and IP theft (13 per cent).

The sector also experienced the highest average loss owing to fraud, with manufacturing businesses that suffered from fraud losing an average of 1.9 per cent of annual revenue.