Kroll Predicts Corruption Costs Could Total $500 Billion Worldwide

Kroll Predicts Corruption Costs Could Total $500 Billion Worldwide, as FBI Braces for Next Wave of Financial Fraud Tied to Stimulus Spending

Government stimulus funding totaling $5 trillion has unintentionally introduced new opportunities for fraud and corruption worldwide, according to the latest edition of the Kroll Global Fraud Report. The report reinforces the global risk consultancy’s consistent call for greater transparency and compliance among organizations worldwide, and coincides with FBI Director Robert Mueller’s recent announcement that corruption and fraud tied to stimulus spending may be the “next wave” in financial fraud cases.

Data from Transparency International, the global coalition against corruption, puts into perspective the heightened risk brought on by today’s financial crisis. According to the coalition, corruption can raise procurement contract costs by at least 10% in a stable economy – an equivalent of $500 billion in corrupt gains – but in emergency situations those costs can rise as high as 30% of the overall cost of the contract.

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