client login    languages

The Network and BDO Consulting Release First Quarter 2011 Findings in the Quarterly Corporate Fraud

Request A Demo of Our Ethics And Compliance Solution

The Network and BDO Consulting Release First Quarter 2011 Findings in the Quarterly Corporate Fraud

Fraud incident reporting has risen to near all-time highs, despite recent legislative action

ATLANTA – May 17, 2011 – The Network, Inc., a leading provider of governance, risk and compliance (GRC) solutions, and BDO Consulting, a division of BDO USA, LLP, today announced the first quarter 2011 findings of its Quarterly Corporate Fraud Index™, a comprehensive examination of fraud incident report activity from almost 15 million employees worldwide.

For the first quarter of 2011, the Fraud Reporting Percentage (FRP), a statistic measuring fraud reporting in comparison to all compliance reporting activity from more than 1,000 organizations worldwide, was reported at 20.3 percent. The FRP statistic rose by more than 60 basis points since last quarter. FRP has increased in each of the last three quarters and stands at its highest mark since the second quarter of 2009.

Other first quarter 2011 findings include the following:

  • FRP (fraud-related reports versus all reporting activity) increased one-tenth of a percent – from 20.2 percent to 20.3 percent – compared to the same quarter in 2010
  • Fraud-Related Incidents (FRI), the total number of reported fraud-related incidents, increased four-tenths of a percent compared to the same quarter in 2010
  • In comparison to the fourth quarter 2010, FRI increased 3.3 percent during the first quarter of 2011
  • First quarter fraud incident volume has steadily risen – by 1,000 basis points, or almost doubling – since the 2005 inception of the Quarterly Corporate Fraud Index

“Looking at the past seven years of data, this quarter’s fraud index is at a near-record high,” said Luis Ramos, chief executive officer of The Network. “This quarter’s FRP is only 10 basis points lower than it was in 2009, one of the worst years for business on record. The increase is in line with what we are hearing from financial analysts and reinforces the trend that even in a recovering economy, fraud reporting is still on the rise.”

First quarter comparisons of FRP for the past seven years are as follows:

1Q 2005 = 10.0%

1Q 2006 = 10.9%

1Q 2007 = 14.3%

1Q 2008 = 16.6%

1Q 2009 = 20.6%

1Q 2010 = 20.2%

1Q 2011 = 20.3%

First quarter comparisons of FRI for the past seven years are as follows:

Fraud Index Report

1Q 2005 = 2530

1Q 2006 = 2948

1Q 2007 = 4435

1Q 2008 = 4943

1Q 2009 = 5439

1Q 2010 = 6089

1Q 2011 = 6111

“With so much attention paid recently to fraud-focused legislation – the FCPA, UK Bribery Act, the Dodd-Frank Act – it’s disturbing that fraud remains at such a high level, and continues to show an increase,” said Timothy Mohr, Certified Fraud Examiner and partner at BDO Consulting. “Without measures such as awareness and ethics hotline programs, incident management systems, investigatory practices, and tools for tracking and analysis, corporate enterprises would feel an even bigger bite from fraud.”

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

For more information regarding the Quarterly Corporate Fraud Index, visit or email

Awards & Certifications 2013 GRC 20/20 Technology Innovation Award 2013 TAG Top 40 Innovative Company 2012 IABC Gold Quill Award 2012 MarCom Award We self-certify compliance Safe Harbor Safe Harbor Certification SOC 2 Certification