Fraudulent Activities on the Rise in New Zealand’s Finance Industry, Report Reveals

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A recent review of fraudulent activities in New Zealand’s finance industry has revealed a concerning trend: a steady number of reported frauds worth over $100,000, but a significant increase in “super frauds” - those worth over $1 million. This trend is attributed to a major $80 million fraud that had been occurring since 2012 and was finally reported this year.

Steady Increase in Fraudulent Activities

• The total value of fraud has increased by 256% compared to the previous year.
• Seven cases of “super frauds” worth over $1 million have been reported this year, up from just three last year.

Serious Fraud Office’s Busy Schedule

The Serious Fraud Office has been actively investigating and prosecuting COVID-19 wage subsidy cases. These cases are expected to feature prominently in the next review period as they start to result in convictions through the court system.

KPMG Offers Support for Organisations

In response to this growing problem, KPMG’s Forensic team is offering support to organisations seeking to detect, prevent, and respond to fraud risks. This includes:

• Conducting a fraud maturity assessment of an organisation’s current policies and practices against best practice standards
• Performing a fraud risk assessment to identify potential vulnerabilities
• Providing a confidential whistleblowing hotline service to facilitate early detection
• Independently investigating alleged or suspected fraud

Advice for Organisations

Organisations are advised to review the report and contact KPMG if they require further information or support in addressing fraudulent activities within their own operations. Interested parties may also want to explore related topics and resources.