In a recent report from the Centre for Counter Fraud Services (CCFS) at Portsmouth University and accountancy firm BDO, a study of 178 FTSE-registered mining companies showed fraud had removed all but just 8% of their profits. What’s more, fraud had increased by almost 18% between 2013 and 2015.
Faced with such staggering figures, particularly for FTSE250 companies with all their resources, you have to ask why. Part of the answer comes back just as unexpected: management priorities. The current trend seems to be reaction, not pro action.
What about response from shareholders? “I don’t think they know and that is part of the problem,” says a security industry insider.