The findings from the 2015 Kroll Global Fraud report revealed that the most common type of fraud experienced in the sector was vendor, supplier or procurement fraud, which is suffered by 20% of leisure and tourism companies. This is higher than the overall average of 17%.

It was followed by theft of physical assets or stock (15%) and corruption or bribery (15%), which is the third highest rate of corruption across all sectors.  

Three quarters of respondents in the sector (75%) said their exposure to fraud had increased, with the biggest drivers of this cited as being high staff turnover (32%) and entry to new, riskier markets (15%).
 
Despite the results, however the report also showed that executives in the transportation, leisure and tourism industry were less likely than peers in other sectors to plan investment in anti-fraud strategies, such as background screening and partner and supplier due diligence.

Tommy Helsby, chair of Kroll said: “Much media attention is focused on external threats to companies, highlighted by high profile cyber attacks, but the evidence revealed in our report and our day to day experience tells a different story.

The respondents in this survey indicate the greatest single cause of fraud in their companies is their own employees. It is not enough for companies to protect themselves from outside threats – both external and internal vulnerabilities need to be addressed.
 
“What our report and our day-to-day experience tell us is that despite companies making greater and more sophisticated efforts to combat fraud, it remains a serious business threat that cannot be completely eliminated.  Furthermore, the adverse impacts of such incidents cannot be underestimated. Fraud is not going away and continues to be on the rise, but the well prepared business can do much to stay one step ahead and be positioned to eliminate or mitigate it.”