Types of Financial Fraud on the Rise in New Zealand: Report Reveals Alarming Trends

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A recent review of financial fraud cases in New Zealand has uncovered a disturbing trend, with seven super frauds totaling over $1 million reported in the past year alone. This significant increase is attributed to a single massive fraud worth $80 million that has been ongoing since 2012.

Key Findings

• The total number of frauds exceeding $100,000 remained steady.
• However, the number of high-stakes cases has seen a marked uptick.
• The Serious Fraud Office has been actively investigating and prosecuting COVID-19 wage subsidy cases, which are expected to feature prominently in the next review period as convictions start rolling in.

Impact on Organizations

In response to these alarming trends, KPMG’s Forensic team is urging organizations to take proactive steps to detect, prevent, and respond to fraud risks. By working with KPMG’s experts, organizations can:

• Conduct a fraud maturity assessment
• Perform a fraud risk assessment
• Establish a confidential whistleblowing hotline service
• Independently investigate alleged or suspected fraud

Importance of Staying Vigilant

The report emphasizes the importance of staying vigilant in the face of emerging threats and offers valuable insights for businesses looking to safeguard their financial interests. To stay ahead of the curve, organizations should:

• Be aware of the latest fraud trends and tactics
• Implement robust fraud prevention and detection controls
• Foster a culture of transparency and accountability
• Provide training to employees on fraud awareness and reporting

What’s Next?

Interested parties are encouraged to read the full report and contact KPMG’s Forensic team for more information on how they can support their organization in this critical area. By taking proactive steps to detect, prevent, and respond to fraud risks, organizations can minimize the risk of financial loss and maintain public trust.