In late June KPMG released numerous findings from "Profile of a Fraudster," its annual, international study that seeks to determine the average profile of white collar criminals. KPMG's study looked at 348 cases of fraud in over 69 countries to create such a profile, and also to determine where most cases of fraud occur, the underlying motives, and ways fraud can be detected at an early stage.

Based on its research, KPMG offers the following profile of the average fraudster:

male;

36-45 years old;

holds a position in the finance (or a closely related) department;

is in senior management;

has been working for the same company for more than ten years; and

operates in collaboration with other offenders.

Although KPMG found some regional differences (e.g., more female fraudsters in the U.S. and Asia; greater collaboration among Swiss fraudsters), the international differences in the profile do not appear to be particularly great. The study also revealed similar motives among fraudsters such as personal financial pressure and a belief that they are underpaid or underappreciated. Interestingly, the study found that "the longer an employee stays in a company, the more likely he is to commit fraud." This may be attributable to the company's increased trust or laxer controls on such employees.

Finally, the study identified numerous "red flags" that in 56 percent of cases were present prior to the actual fraud. These include behaviors such as refusal to take vacation time, unusual generosity, and a special interest in specific business workflows.

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