Welcome!

Wearables Authors: Elizabeth White, Pat Romanski, Liz McMillan, Dana Gardner, Kevin Benedict

News Feed Item

Most Companies are Ill-Prepared to Investigate Cross-Border Fraud, Says KPMG Study

Most Companies are Ill-Prepared to Investigate Cross-Border Fraud, Says KPMG Study

NEW YORK, May 23 /PRNewswire/ -- In an age when criminals can digitally flash stolen money and intellectual property across the globe in an instant, corporations are often unprepared to investigate fraud promptly and effectively if it occurs in a country other than where they are headquartered, according to new research by KPMG International.

In a KPMG survey of senior business executives in 21 countries, 92 percent of respondents said that in the coming year they expect to perform at least the same number of international investigations - and many expect an increase - yet 56 percent said they have not implemented comprehensive investigation procedures. By contrast, 60 percent of the executives acknowledge that planning an investigation remains key to its success.

"Fraudsters operate undeterred by global boundaries," said Richard H. Girgenti, the Forensic National Practice leader for KPMG LLP, the U.S. audit, tax and advisory firm. "Therefore, companies must be increasingly vigilant about their ability to prevent, detect and respond to fraud.

"Companies need an effective fraud detection and investigative capability that is painstakingly disciplined and lightning fast - a virtual Corporate Crime Scene Investigations unit," Girgenti continued. "In addition to financial loss, an ineffective investigative process can adversely reflect on an organization's reputation, its risk management abilities, and its commitment to good corporate governance."

Girgenti recalled a situation with a client who, with only days before releasing earnings, received an anonymous letter alleging a series of improper month-end adjustments made at a foreign subsidiary. The writer also suggested that the letter would reach the SEC if a prompt investigation did not occur. The company indeed determined that an immediate investigation was needed to determine the validity of the allegations in order to meet filing requirements. The company quickly was able to deploy the necessary resources and worked to rectify the situation.

"Multinational organizations often develop one-size-fits-all investigative policies and procedures across the many countries in which they operate, but each nation has its own, ever-changing regulatory and policing procedures that can stymie an investigation," said Phillip D. Ostwalt, a U.S. KPMG Forensic(SM) partner. "Companies should establish broad investigative procedures, knowing that they should be tailored to each respective country, ideally with a well-trained local team that knows the language, culture, and legal and regulatory environments."

Executives surveyed by KPMG say they are challenged around the globe by a variety of factors when conducting cross-border investigations. These challenges fall into four main categories including:

-- Cultural, language and legal differences; -- Identifying what should be their initial response to an incident of alleged fraud; -- Not having an investigative team with the right technical skills and experience; and, -- The availability and accessibility of electronic data.

In addition, just 48 percent of the survey respondents said their investigative staff had received training during the last six months, while 27 percent had not been trained within the last year.

Girgenti added that there are steps that executives can take to improve international investigations of fraud, including:

-- Assess and benchmark their organization's investigation competence against industry-recognized "better practice" capabilities; -- Assess their investigation protocols and ensure that the board and audit committee are informed of all critical issues; -- Ensure a single, global point of accountability for reporting incidents of fraud and misconduct; -- Educate investigation teams on managing fraud and misconduct issues across borders; -- Develop a written incident-response document that includes a comprehensive set of protocols; -- Evaluate local legal requirements and the ability of the organization's IT organization to promptly retrieve data from systems in disparate global locations; -- Involve legal counsel in all aspects of creating initial investigation protocols and operating procedures; and, -- Employ outside resources with significant industry knowledge and global investigations experience.

Girgenti said that almost 80 percent of the survey respondents believed that in the next five years proficiency in information technology will be even more important than it is now to the success of cross-border fraud investigations. "Getting better at utilizing technology to combat fraud clearly remains high on the agenda of businesses who want to be able to detect and investigate fraud, as well as recover losses," he said.

The KPMG survey conducted during late 2006 and early 2007 brought responses from 103 senior business executives throughout North America, South America, Europe, Asia, Australia, and Africa who are responsible for cross- border investigations within multinational businesses.

To view the report, Cross Border Investigations: Effectively Meeting the Challenge, please visit http://www.us.kpmg.com/news/index.asp?cid=2439

KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 148 countries and have 113,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss cooperative. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG LLP, the audit, tax and advisory firm (http://www.us.kpmg.com/), is the U.S. member firm of KPMG International.

Contact: Robert Wade/Dean Mastrojohn KPMG LLP Tel: 201-307-7482/201-307-8201 Email: [email protected] / [email protected]

KPMG LLP

CONTACT: Robert Wade, +1-201-307-7482, [email protected], or Dean
Mastrojohn, +1-201-307-8201, [email protected], both of KPMG LLP

Web site: http://www.us.kpmg.com/

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, will compare the Jevons Paradox to modern-day enterprise IT, e...
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
Is your aging software platform suffering from technical debt while the market changes and demands new solutions at a faster clip? It’s a bold move, but you might consider walking away from your core platform and starting fresh. ReadyTalk did exactly that. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue and over a decade of audio conferencing product development to start an innovati...
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...