News

Fraud rife among travel firms, global study finds

Fraud affected half of travel, leisure and transportation businesses in the last 12 months, according to a new global study.


Internal financial fraud is one of the most widespread facing the sector, with more than one in five businesses (22%) falling victim to it in the past year.


Regulatory or compliance breach is also a problem, with 16% of companies reporting incidents of this type.


A smaller but still significant number (6%) of businesses said that they had suffered from corruption and bribery in the past 12 months.


More than half of companies in the sector (52%) said their exposure to fraud has increased in the past year, with IT complexity seen as the most important factor behind increased exposure to fraud, cited by 36% of firms affected.


More than half of the information attacks that took place in the past year targeted internal strategic plans or data (55%), the highest figure for any industry sector.


Where there has been a fraud and the perpetrator is known, travel and leisure companies are the most likely to report that an insider has been involved (88% of the time) and that senior management employees are involved (34%, nearly twice the survey average of 18%).


This is consistent with a marked rise in internal financial fraud in the sector, from 16% last year to 22% this year, according to a global fraud report by experts Kroll Advisory Solutions.


The company’s Eurasia chairman Tommy Helsby said: “One look at the global headlines in the past year, from LIBOR-fixing in London to accounting fraud in Tokyo, will tell you that fraud continues to be a pervasive issue, and for each story that enters the public consciousness there are many more that don’t.


“Increasingly, fraud exhibits industry-specific and regional characteristics, which require detailed knowledge of a market, sector, business process or culture to unearth, redress and prevent.


“Companies that get complacent about it do so at their own peril.”

Share article

View Comments

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.