28 August, 2018
Matthew Weitz, Associate Managing Director, Kroll and Michael Milton, Director, Kroll, take an in-depth look at how fraud is adversely affecting the UK construction sector and suggest ways to avoid the issue.
In recent years, an increasing number of companies in the construction industry have suffered large scale co-ordinated internal frauds that have resulted in losses in the millions. Considering the UK industry is now worth £100bn a year[1], the rewards for fraudsters and corresponding risks to corporates are substantial.
A recent report[2] found that in 2017 the construction sector experienced the greatest year-on-year increase in fraud incidents across all sectors. 83 per cent of respondents in the construction sector reported that they had experienced a fraud in the previous 12 months, an increase of 13 percentage points from the 2016 report.
The study indicated that more than a third of respondents (34 per cent) reported losses of seven per cent or more of company revenues from these fraud incidents – losses that can be crippling in a sector operating at low margins. Furthermore, the resulting reputational and relationship damage can also have a devastating impact on future revenues.
For the full article, please click here.
This article originally appeared in Construction Industry News
For further information, please contact:
Richard Dailly, Managing Director, Investigations And Disputes, Kroll Associates (S) Pte
rdailly@kroll.com
