A triple threat across the Americas: KPMG 2022 Fraud Outlook

KPMG is pleased to present its 2022 outlook on fraud, cyber attacks and compliance concerns across the Americas. Our survey of more than 600 executives across multiple industries confirms anecdotal evidence about the effects of the pandemic on these three interconnected threats: it reveals that fraud, compliance concerns and cyber attacks are common, have increased in severity — and are expected to become more frequent.

Are companies in the Americas managing to fend off this triple threat? This research suggests that many have limited defenses in place, and the shift to hybrid or remote working is making existing controls less effective.

A united defense against a triple threat

Fraud, compliance risks and cyber attacks are widespread, growing dangers for companies across North and Latin America.

Companies need to mitigate what KPMG calls the ‘threat loop,’ which comprises the triple threat of fraud, compliance risk and a growing array of cyber security threats.

Companies have urgent priorities

• Fraud: Never discount the possibility of an inside job. A significant 31 percent of respondents say their companies have suffered from fraud perpetrated by an insider in the past year.
• Compliance: Compliance is a reputational issue. More respondents say that reputational considerations cause their leaders to pay attention to compliance than say the same of fines and enforcement.
• Cyber security: Slow and steady will not win the cyber security race. Respondents tell us it takes about a month, on average, for a cyber attack to be fully contained, and most seem satisfied with how well their companies do in this area. This indicates that there is a potentially fatal lack of urgency in how companies are responding to the threat of cyber attacks.

Is your company prepared for the triple threat?

The results of the survey indicate that fraud, compliance risks and cyber attacks are widespread, growing dangers for companies across North and Latin America. Increasingly, companies need to mitigate what KPMG calls the ‘threat loop,’ which comprises the triple threat of fraud, compliance risk and a growing array of cyber security threats. Defending against this threat loop requires a collective, interconnected effort. Companies need to look at the impact created by these threats in conjunction, rather than just the risks they pose in isolation.

Top 5 things to consider

1. Set the right tone from the top
2. Carry out a risk review
3. Communicate effectively
4. Strengthen detection
5. Create a culture of enforcement and accountability