SecurityBrief Asia logo
Asia's leading source of cybersecurity and cyber-attack news
Story image

Survey finds China’s a hotspot for all types of fraud: Whistleblowing may be the answer

By Sara Barker
Mon 23 Jan 2017
FYI, this story is more than a year old

Last year saw a jump in fraud and risk incidents across China, and one third of these were perpetrated in part by senior or middle management, according to a new survey by Kroll.

The new survey, titled the Kroll Annual Global Fraud and Risk Report, surveyed 545 senior executives across a range of industries worldwide.  

It found that 86% of respondents with operations in China experienced a fraud incident last year, a 13% jump since 2015. It is now well above the global average of 82%.

Overall, the global average has also jumped from its 75% rating in 2015, highlighting the growing threat to corporate reputation and regulatory compliance.

What’s more, a further 25% of respondents were reluctant to operate in China because of fraud concerns.

“China is the dominant trading partner of many countries, therefore, it wouldn’t be in the best interest to shy away simply because of concerns over fraud,” says Violet Ho, senior managing director and co-head of Kroll’s Greater China Investigations and Dispute practice.

“Managing fraud risk in China is achievable with a clear and consistent strategy. It is essential to treat the fight against fraud as a long-term game. Getting the most out of the whistle-blowing system, ensuring independence of investigations and building a strong compliance culture with the right tone from the top could be effective approaches to mitigate risks,” Ho continues.

The report also found that 41% of breaches were regulatory or compliance breaches, followed by vendor, supplier or procurement fraud. Both were higher than the global average.  

Other fraud types include theft of physical assets, stock, data and information. The survey also found that corruption, bribery, market collusion and misappropriation of company funds also contributed to ‘above average rates’.

52% of respondents attributed joint venture partners as the key perpetrators of fraud – almost twice the global average.

“Apart from junior employees, fraud in China was often committed by senior or middle management, resulting in potentially more significant losses. It also often involved cross-departmental and multiple-party-collusion, rendering many traditional internal control measures ineffective,” adds Colum Bancroft, managing director and co-head of Kroll’s Greater China Investigations and Dispute practice.

Bancroft says that rapid staff turnover and expansion have contributed to a lack of continuity in fraud detection and governance, while fraudsters are targeting those gaps.

As protection, 90% had invested in partner, client or vendor due diligence, while 86% had invested in physical asset protection.

Cyber incidents also hit 86% of respondents within the past 12 months. 41% were phishing attacks, 39% were viruses or worms and 39% were due to malware issues that caused file deletion or corruption.

Most cyber attacks targeted customer records (82%), as well as trade secrets, intellectual property and R&D. 48% of respondents said their company’s relationship with regulatory authorities was strongly affected by cyber attacks.

To fight back against fraud, 86% had invested in board engagement in cyber policies and procedures.

Whistleblowers and external audits accounted for (55%) of discovered fraud cases.

Related stories
Top stories
Story image
Tech job moves
Tech job moves - Bitdefender, Cohesity, Fortinet & MODIFI
We round up all job appointments from June 27-30, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
Artificial Intelligence
Juniper study reveals top AI trends in APAC region
Juniper's research shows an increase in enterprise artificial intelligence adoption over the last 12 months is yielding tangible benefits to organisations.
Story image
Research
New study reveals 51% of employees using unauthorised apps
The research shows that 92% of employees and managers in large enterprises want full control over applications, but they don't have it.
Story image
Cyber Criminal
Identity and access: the fight is on
Blue team defenders are used to protecting our data, applications, and users with access controls and other security mechanisms, which is why attacks like this are especially challenging when they target identity and access control systems.
Story image
Cybersecurity
Vulnerable APIs costing businesses billions every year
Large companies are particularly vulnerable to the security risks associated with exposed or unprotected APIs as they accelerate digital transformation.  
Story image
Internet of Things
Domino's Pizza: A blueprint for secure enterprise IoT deployment
Increasingly, organisations are embracing smart technologies to underpin innovations that can enhance safety and productivity in every part of our lives, from industrial systems, utilities, and building management to various forms of business enablement.
Story image
Cybersecurity
Greater API usage raises concerns for protection - report
Radware has released its 2022 State of API Security report, which shows a rise in APIs, with 92% of the organisations surveyed significantly or somewhat increasing their usage.
Story image
Apple
LastPass announces new capability for iPhones and iPads
LastPass has announced its new save and fill experience, allowing customers to fill in, create and save their credentials directly within the site's form field.
Story image
10 Minute IT Jams
Video: 10 Minute IT Jams - An update from Rimini Street
Today we welcome back Daniel Benad, who is the GVP & regional GM for Oceania at Rimini Street.
Story image
Network Security
Netskope announces zero trust network access updates
Customers can now apply zero trust principles across a range of hybrid work security needs, including SaaS, IaaS, private applications, and endpoint devices.
Story image
Manufacturing
Sternum joins NXP, collaborates on IoT security and observability
Sternum has announced it has joined the software partner community of NXP Semiconductors, a manufacturer of and large marketplace for embedded controllers.
Story image
Internet of Things
ManageEngine wins big in IDC MarketScape assessment
ManageEngine's Endpoint Central service has been recognised as a leader by IDC MarketScape in several categories including Internet of Things device deployments and UEM software for SMEs.
Story image
Tech job moves
Tech job moves - ActiveCampaign, Arcserve, LogRhythm & Qlik
We round up all job appointments from June 17-22, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
Amazon Web Services / AWS
Zscaler, AWS accelerate onramp to the cloud with zero trust
Zscaler has announced an extension to its relationship with Amazon Web Services, as well as innovations built on Zscaler's Zero Trust architecture.
Story image
HP Inc
Firmware attacks significant threat in age of hybrid work
Changing workforce dynamics are creating new challenges for IT teams around firmware security, according to new research.
Story image
Ransomware
Secureworks reveals new information on BRONZE STARLIGHT threat group
New research from Secureworks has uncovered new information on the Chinese threat group BRONZE STARLIGHT and how they are using targeted ransomware to initiate complicated attacks.
Story image
Vendor
Forescout reveals top vulnerabilities impacting OT vendors
Forescout’s Vedere Labs has disclosed OT: ICEFALL, naming 56 vulnerabilities affecting devices from 10 operational technology vendors.
Story image
Cybersecurity
Significant security concerns resulting from open source software ubiquity
"The risk is real, and the industry must work closely together in order to move away from poor open source or software supply chain security practices."
Story image
Cloud Security
Palo Alto Networks bolsters cloud native security offerings
Latest Prisma Cloud platform updates help organisations continuously monitor and secure web applications with maximum flexibility.
Story image
Identity and Access Management
Ping Identity launches corporate venture capital fund
Ping Identity has launched a corporate venture capital fund to foster innovative offerings for the identity security market.
Story image
Cybersecurity
Zero trust security adoption rises 27% in just two years
A survey of WAN managers has revealed that multi-factor authentication and single sign-on are the top zero trust features implemented.
Story image
SaaS
Varonis strengthens security capabilities for AWS and S3
Varonis has strengthened and expanded its cloud and security capabilities, with a critical aim of improving safety and boosting data visibility in Amazon Simple Storage Service (S3).
Story image
Cybersecurity
Aqua Security, CIS create software supply chain security guide
Aqua Securityand the Center for Internet Security have together released the industry’s first formal guidelines for software supply chain security.
Story image
Digital Transformation
Cybersecurity priorities for digital leaders navigating digital transformation
In recent years, Asia-Pacific has especially been a hotspot for cyberattacks, and as we continue into 2022, it’s evident that the problem is becoming more significant.
Story image
Oracle Cloud
Commvault, Oracle to deliver Metallic Data Management as a Service
"We are excited to partner with Commvault and enable our customers to restore and recover their most mission-critical cloud data."
Story image
DDoS
Flashpoint unveils security offering for school boards
Flashpoint has released its K-12 risk management and security offering to provide school boards and education security practitioners with tools to recognise, prevent and manage cyber and physical threats.
Story image
Digital Transformation
What CISOs think about cyber security, visibility and cloud
Seeking to uncover the minds of CISOs and CIOs across Asia Pacific, my company recently asked Frost & Sullivan to take a snapshot of cloud adoption behaviour in the region.
Story image
Artificial Intelligence
Abnormal Security finds financial supply chain under threat
New research by Abnormal Security has found a rising trend in financial supply chain compromise as threat actors increasingly impersonate vendors.
Story image
INTERPOL
Hundreds arrested, millions seized in global INTERPOL investigation
A two-month-long investigation by INTERPOL this year involved 76 countries and clamped down on organised crime groups behind telecommunications and social engineering scams.
Story image
Motorola Solutions
Motorola Solutions deploys communication system to 5th Japanese airport
Motorola Solutions with its partner, Nippon Airport Radio Services deployed the mission critical communication system to Kansai.
Story image
WatchGuard Technologies
Ransomware volume doubled 2021 total by end of Q1 2022
Ransomware detections in the first quarter of this year doubled the total volume reported for 2021, according to a new report. 
Story image
Trend Micro
5G network projects driven by improving security and privacy
Trend Micro's new study reveals the prospect of improved security and privacy capabilities are the main motivations behind private 5G wireless network projects.
Story image
Cybersecurity
Video: 10 Minute IT Jams - An update from CrowdStrike
Scott Jarkoff joins us today to discuss current trends in the cyber threat landscape, and the reporting work CrowdStrike is doing to prevent further cyber harm.
Story image
Cybersecurity
Threat actors ramp up their social engineering attacks
As people get better at identifying potential threats in their inbox, threat actors must evolve their methods. Their new M.O? Social engineering.
Story image
Cybersecurity
Kaspersky opens three new centers to boost data management
Cybersecurity company Kaspersky has opened three new Transparency Centers, one in Japan, the second in Singapore and the third in the United States.
Story image
Cybersecurity
FIDO Alliance releases guidelines for optimising UX with FIDO Security Keys
The new guidelines aim to accelerate multi-factor authentication deployment and adoption with FIDO security keys.
Story image
API
Industry-first comprehensive risk-based API security enhances protection
Application Programming Interfaces (APIs) have become a crucial part of operating web and mobile application businesses and are causing significant economic growth in the digital sector.
Story image
Compliance
Stock security features inadequate in face of rising risk
"Organisations must proactively find ways of identifying unseen vulnerabilities and should take a diligent, holistic approach to cybersecurity."
Story image
Yubico
New research shows global drive for passwordless authentication
A new study has shown there has been a significant shift towards wanting a passwordless future, but adoption is still in its infancy.
Story image
Gartner
Gartner's top recommendations for security leaders
"Leaders now recognise that major disruption is only one crisis away. We can’t control it, but we can evolve our thinking, philosophy, program and architecture.”
Story image
Cybersecurity
Email threats spike 101%, remains a top attack vector
"Each year we see innovation in the threat landscape, but each year email remains a major threat to organisations."
Story image
Infosys
Preparing for the digital decade with the right workforce strategies
For a decade that started under the pall of the pandemic, the 2020s is poised to end with a bang with the digital economy swelling to a high across the world.
SonicWall
Find out how you and your business can prevent being caught out by everything from ransomware to cryptojacking.
Link image
Story image
Tech job moves
Tech job moves - Boomi, Limepay, Thales, VMware & Zoom
We round up all job appointments from June 6-16, 2022, in one place to keep you updated with the latest from across the tech industries.