White-collar criminals: male, 36 to 55 years old, long-term employees

The latest KPMG study "The Enemy Within - Profiling the Corporate Fraudster" shows that, despite different cases of white-collar crime, some common characteristics can be identified among the perpetrators.

White-collar criminals: friendly, extroverted and respected

If there were a typical profile of a white-collar criminal, they would be male, between 36 and 55 years old and have worked for the company for over six years. Offenders show no suspicious behavior such as resentment towards the company or signs of personal or professional problems. They are considered friendly and extroverted and are generally perceived as a person of respect - but this façade often conceals a strong sense of superiority.

The study also shows that almost three quarters of fraud cases (71%) were committed by groups of two to five people, while 8 % were committed by individuals and 21 % by groups of more than five people. These were often employees of multinational companies. Women were also involved in 52% of the fraud cases committed by two or more people.

Technology not yet a decisive factor 

Despite the advancement of digitalization, 46% of fraud cases were committed without the use of technology, while it only played a minor role in 35%. "The use of technology leaves digital traces that can be detected more easily and quickly. In addition, companies are increasingly using technological solutions to optimize their defense mechanisms," says Bob Dillen, Head of Forensics at KPMG Switzerland. 

Dillen expects digitalization and AI in particular to play an increasingly important role in white-collar crime in the future, not least due to the increased use of "deepfakes", for example to simulate executive powers. 

Focus on financial profit

The main motive for white-collar criminals is financial gain, followed by opportunism. Only rarely are crimes committed out of financial necessity or to conceal their own misconduct, such as losses. The most common offenses were misappropriation of assets (52%), followed by forgery (29%) and theft (24%). In just under half of the fraud cases (45%), the amount of the offense was less than 500,000 US dollars. One in five cases involved an offense amount of over 5 million US dollars.

Weak internal controls as the main cause of white-collar crime

In 76% of the fraud cases, there were insufficient internal controls. 51% of the companies concerned had not even implemented any adequate control mechanisms at all at the time of the fraud, while the other companies cited codes of conduct (81%), internal audits (64%) and whistleblowing (60%) as the most common control instruments.

The most important method of detection was information received via official internal channels such as whistleblowing hotlines or from informal sources. "Curbing white-collar crime requires not only effective systems, but also employees who are aware of the risks and take responsibility," says Dillen.

Source: KPMG