NEW YORK, January 18 – U.S. companies are experiencing increasing losses from fraud, compliance breaches and cyber attacks, with the situation expected to worsen in the next 12 months, according to a KPMG survey of senior risk executives, “A Triple Threat Across the Americas, 2022 KPMG Fraud Outlook.”
In fact, two thirds of U.S. survey participants expect external fraud to increase in the next year, with 84 percent saying that cyber risk will grow, and 73 percent expecting compliance risk to rise. However, only 35 percent say their companies have programs in place to cover prevention, detection and response to fraud.
“Fraud, compliance risk and cyber attacks are increasing at an alarming rate, eating away profits across the U.S.,” said Amanda Rigby, U.S. Forensic Service Network Leader, KPMG LLP. “Collectively, these issues create a ‘threat loop’ which can quickly overwhelm companies with economic loss, regulatory loss and reputation loss. Despite the potential for calamity, the majority of U.S. companies are not ready to fight the threat loop.”
The KPMG survey provides insights from 642 senior executives in the Americas, with 34 percent of respondents being from the United States.
Fraud Prevention is an Urgent Priority
Cyber incidents and breaches continue to be a growing problem for organizations
“There is no question that cyber criminals have been emboldened from recent successful attacks, especially ransomware which has monetized their illegal activity,” said David Nides, Principal, Cyber Response Services, KPMG LLP. “Firms must be ready to act quickly, comprehensively and work collectively with other firms and government entities to help prevent and mitigate these attacks.”
Compliance is Now a Reputational Issue
Fraud Threats Differ Sharply Across the Americas
“Given the incident rates, it’s understandable for U.S. companies to prioritize external threats, but they cannot neglect the threat loop, because fraud incidents and non-compliance are also increasing,” added Rigby.
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