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The Network and BDO Consulting Release Second Quarter 2010 Data In Quarterly Corporate Fraud Index

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The Network and BDO Consulting Release Second Quarter 2010 Data In Quarterly Corporate Fraud Index

The Network and BDO Consulting Release Second Quarter 2010 Data In Quarterly Corporate Fraud IndexTM

Fraud Incident Reports Decline Slowly, Return to Reporting Figures from Two Years Ago

Norcross, Ga. – October 13, 2010 – The Network, Inc., a leading provider of governance, risk and compliance (GRC) solutions, and BDO Consulting, a division of BDO Seidman, LLP, today announced the second quarter 2010 findings of its Quarterly Corporate Fraud Index™, a comprehensive examination of fraud incident report activity from 12 million employees worldwide.

In second quarter 2010, fraud incident reporting accounted for 19.6 percent of all compliance reporting activity from more than 1,000 organizations worldwide. This percentage has slowly declined during the past three consecutive quarters when fraud-related reports accounted for 20.2 percent.

“Following a surge of in-house fraud reporting last year, fraud incident reports have now returned to nearly the same levels as second quarter of 2008,” said Luis Ramos, chief executive officer of The Network. “However, as compliance guidelines change due to legislation like the Dodd-Frank Act and UK Bribery Act, it is tantamount for organizations to stay ahead of the curve and proactively manage risk.”

Over the past five years, second quarter comparisons of fraud reporting are as follows:

Second quarter 2005—9.2 percent
Second quarter 2006—11.9 percent
Second quarter 2007—13.8 percent
Second quarter 2008—19.4 percent
Second quarter 2009—20.7 percent

Second quarter 2010—19.6 percent

Second Quarter Comparison of Fraud Reporting

Fraud Reporting

As Timothy Mohr, Certified Fraud Examiner and partner at BDO Consulting, explains, “the slight decline in fraud reporting is partly due to senior executives more closely examining all aspects of GRC issues, particularly in-house fraud, and capturing misconduct from every single source to comply with new regulations.”

Regulatory agencies are also taking a more aggressive approach to investigating violations and raising the penalties for abuses according to the latest edition of the Kroll Global Fraud Report.

Second Quarter Comparison of Fraud Reporting

The Quarterly Corporate Fraud Index is compiled from actual incidents reported by clients of The Network and was analyzed by The Network and BDO Consulting. Fraud-related incidents include reports on corruption and fraud, misuse of assets, conflicts of interest and Foreign Corrupt Practices Act (FCPA) violations.

For more information regarding the Quarterly Corporate Fraud Index, visit or email To view a social media version of this news release, visit

About The Network, Inc. The Network, Inc. is a leading provider of governance, risk and compliance solutions that help organizations mitigate risk and promote organizational compliance. Through the integration of on-demand software and services, The Network helps clients identify, communicate, resolve and mitigate risk issues and incidents. Established more than 25 years ago, The Network serves thousands of organizations in every industry, including nearly 50 percent of the Fortune 500. For more information, visit

About BDO Consulting BDO Consulting, a division of BDO USA, LLP, provides litigation, investigation and restructuring services to major corporations, law firms, insurance companies, financial services entities and government organizations. Our highly experienced and well-credentialed professionals draw upon a range of industry knowledge and completed consulting engagements throughout the United States and internationally to provide clients with unparalleled service. BDO Consulting leverages the global industry and accounting knowledge of the BDO International network, providing rapid, strategic advice to assist our clients with dispute resolution, mergers and acquisitions, financial solvency and regulatory compliance issues.

BDO Consulting is a division of BDO USA, LLP, a New York limited liability partnership and the U.S. member of BDO International Limited. BDO International Limited is a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms.


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