Fraud common in NZ business, survey finds

More than half of New Zealand's companies are stepping up security measures to combat fraud, a study shows.

The international research, commissioned by recruitment firm Robert Half Finance & Accounting (RHFA), found 65 per cent of New Zealand firms had increased anti fraud measures in the past two years.

RHFA managing director David Jones said the rate at which firms were addressing security concerns was quicker than other Western countries, the survey found.

The most common type of fraud was that by an employee, 56 per cent of the respondents said.

This was followed by financial reporting with 22 per cent and computer crime at 10 per cent.

"The internal threat of employee fraud in New Zealand is very real and few businesses can honestly say they have implemented the necessary practices and procedures to examine this issue effectively," Mr Jones said.

Of the companies surveyed, 90 per cent used internal measures to audit and detect fraud, while 51 per cent used outside measures as well or instead of internal controls.

John Whittfield, a partner in insolvency specialist McDonald Vague, said failed companies showed plenty of evidence of fraud, because of the trust placed in individuals.

- NZPA