While Markets Continue To Fall, Fraud Activity Continues To Rise

While the global economy continues to fall, incidences of corporate fraud are on the rise. The current economic instability, coupled with weakened internal controls found in many organizations, both large and small, has created the perfect storm for corporate fraud.

As the economy continues to slow down, companies are under increasing pressure to maintain or improve their performances, often to the detriment of the organizations' long-term objectives. In some instances, organizations expect results that can only be achieved in a thriving economy. In slower economic times, this mindset can contribute to increased fraudulent activity within an organization.

During a prolonged recession, we are likely to witness even more fraudulent activities. During challenging economic conditions, the pressure to constantly meet projected financial results is even greater and the occurrence of fraud can become more common. Historically, revenue recognition fraud, which occurs