client login    languages

The Network and BDO Consulting Release 4Q 2011 Findings in the Quarterly Corporate Fraud Index

Request A Demo of Our Ethics And Compliance Solution

The Network and BDO Consulting Release 4Q 2011 Findings in the Quarterly Corporate Fraud Index

Fraud incident reporting sets high mark for third consecutive quarter; organizations urged to look at fraud policy, training, response plans as fraud continues to evolve

ATLANTA – March 29, 2012 – 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 fourth quarter 2011 findings of the Quarterly Corporate Fraud Index™, a comprehensive examination of fraud incident report activity from almost 15 million employees worldwide.

For the fourth quarter of 2011, the Fraud Reporting Percentage (FRP) increased to an all-time high of 21.6 percent, which makes three consecutive quarters of new all-time highs. The FRP statistic measures fraud reporting in comparison to all compliance reporting activity from more than 1,400 organizations worldwide, including nearly half of the Fortune 500.

Other key fourth quarter 2011 findings include the following:

  • FRP (the percentage of fraud-related reports versus all reporting activity) increased 2.0 percentage points – from 19.6 to 21.6 percent – compared to the same quarter in 2010
  • FRP grew by slightly more than 2.5 percent from the third quarter 2011
  • The total number of reported fraud-related incidents (FRI) also rose – up 15.2 percent – compared to the same quarter in 2010

“Fraud remains a heavy burden for enterprises struggling to recover from a difficult global economy,” said Luis Ramos, CEO of The Network. “We continue to see fraud evolving as technology exposes company data and assets to would-be fraudsters.”

Ramos continued: “However, the upward trend in fraud reporting may actually indicate that organizations are working harder than ever to fight the risks posed by fraud. A key to detecting fraud is to have a workforce willing to report it to you by creating a culture that does not tolerate retaliation.”

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


4Q 2005 = 11.6%
4Q 2006 = 13.3%
4Q 2007 = 13.0%
4Q 2008 = 18.9%
4Q 2009 = 20.2%
4Q 2010 = 19.6%
4Q 2011 = 21.6%

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


4Q 2005 = 2822
4Q 2006 = 3937
4Q 2007 = 4478
4Q 2008 = 5392
4Q 2009 = 5804
4Q 2010 = 5915
4Q 2011 = 6816

“There is a silver lining to the continued increase in fraud reports, if organizations and employees have become more aware of the possibility of fraud and are ready and willing to take action,” said Glenn Pomerantz, partner at BDO Consulting and a Certified Fraud Examiner. “Companies should look at fraud indicators to see how they can better identify fraud in its early stages, as well as assess their fraud policies and training initiatives to prevent fraud in the first place.”

Pomerantz continued: “Organizations must remember that fraud is always a possibility and be prepared with a defined fraud investigation and response plan to be implemented as soon as fraud is detected.”

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, theft, accounting and audit irregularities, 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