Instances of fraud have risen 13 percent since 1998, but companies are taking more proactive measures to counter fraud than ever before.

According to KPMG’s Fraud Survey 2003, company management is taking a more active approach in detecting fraud through internal controls and internal audits (see chart).

In fact, over 75 percent of the organizations surveyed had uncovered fraud through internal controls, and—not surprisingly, due to SOX 404 issues—most had conducted a review of those controls within the past 12 months.

Among the other top fraud mitigation policies instituted during the past year were periodic compliance audits, creation of employee hotlines, appointment of compliance personnel and establishment of codes of conduct for employees.

  Download KPMG’s Fraud Survey 2003

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