Fraud continues to increase in depth and breadth despite Sarbanes-Oxley; the methods of committing financial fraud have not materially changed; and traditional measures of corporate governance have limited impact on predicting fraud. In other words, same old-same old, only worse. In its 2010/2011 Global Fraud Report, risk consulting firm Kroll found that business losses due to fraud increased 20 percent in the last 12 months, from $1.4m to $1.7m per billion dollars of sales. The report, based on a survey of more than 800 senior executives from 760 companies around the world, also found that 88 percent of the respondents reported being victims of corporate fraud over the past 12 months. If fraud were the flu, this would qualify as a pandemic.
