Fraud Report 2009 Presentation

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Contents

• Summary of the report’s findings

• Sector differences

• Prevalence of fraud

• Drivers of fraud

• Heatmap of types of fraud by sector

• Types of fraud

• Regional differences

• Countermeasures against fraud

• Articles & themes of the Annual Global Fraud Report

• Kroll services

• Contact us

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Summary

• Kroll’s third Annual Global Fraud Survey, commissioned by Kroll and conducted by the Economist Intelligence Unit – surveyed over 700 people.

• The incidence of fraud is almost identical to that found in last year’s survey, at 85% per cent of respondents, and the average loss per company has risen only slightly in the new survey, to $8.8 million from $8.2 million.

• Those dangers which grow as companies expand – entry into new markets, staff turnover for example – have declined in importance.

• The downturn, however, has heightened other risks. Pay stringency in the face of lower revenue, cost cuttings on controls, for example, has provided a motive for fraud.

• Larger companies – those with over $5 billion in annual sales – reported greater average losses, up to $25.8 million from $23.3 million in 2008, the situation improved for smaller business – those with yearly revenue under $5 billion – dropped to $4.6 million from $5.5 million.

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Different sectors have seen different levels of fraud this year

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Sectors

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Shift in those perceiving fraud as more or less prevalent…

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…because drivers of fraud have reduced – expansion on hold

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Different sectors are vulnerable to different threats

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The types of threats from fraud remain similar over time

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Europe, Middle East/Africa have seen increase in fraud; elsewhere, falling or static prevalence and loss

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Planned countermeasures (% of respondents planning on undertaking countermeasures against fraud in next year)

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Themes in the Global Fraud Report 2009/10

• Credit card and ID fraud

• How technology is helping and hindering the fight against fraud

• Understanding emerging market risks and rewards

• How regulations and laws are affecting fraud risks

• Ten full sector profiles

• Five regional analyses

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How Kroll can help in the fight against fraud

• By preventing

• And detecting

• And investigating

Corporate Internal Investigations Computer Forensics

Forensic Accounting Expert Testimony

Litigation Support Investigative Due Diligence

Electronic Discovery Identity Theft Restoration

Asset Tracing & Recovery Fraud Prevention Training

Intellectual Property Protection

Process & Internal Controls Assessment

FCPA, Regulatory & Corporate Governance Investigations

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How to contact us

New YorkBlake Coppotelli bcoppotelli@kroll.comPhone: 1 212 593 1000

LondonRichard Abbeyrabbey@kroll.comPhone: 44 207 029 5000

Hong KongTad Kageyamatkageyama@kroll.comPhone: 852 2884 7788

MiamiSam Ansonsanson@kroll.comPhone: 1 305 789 7100

fraud@kroll.com

www.kroll.com/fraud