Kroll Global Fraud Report: Canada Ranks Low and Africa High on Business Fraud Rating

Canada ranks as the least prone nation to business fraud compared to countries in any other region, while countries in sub-Saharan Africa, China and India rank high in fraud and theft, according to a survey by the international risk management firm, Kroll Advisory Solutions.

Just 47 percent of the respondents (companies) reported any form of difficulties such as theft or corruption while doing business in Canada, much below the global survey average of 61 percent.

On the other hand, nearly 77 percent of the companies doing business in sub-Saharan Africa faced some form of fraud. But the trend showed a decline from the previous rate of 85 percent in 2011.

"Canada is a relatively easy place to do business," Kroll Chief Executive Officer Tom Hartley told Bloomberg.

"You are more likely than not to be hit by fraud pretty much wherever you are in the world. Except Canada."

In the US, 60 percent of the surveyed reported incidence of business fraud, theft or corruption. Up to 26 percent of the respondents reported information theft in the United States. The rate stands at 61 percent for Russia on par with the global rate.

Among Asian countries, 68 percent of Indian respondents reported fraud followed by China and Indonesia with 65 percent. The survey shows a drop of 19 percent on respondents reporting fraud and theft in China while 84 percent said they were affected by some form of wrongdoing.

"We were a bit surprised to see it drop to that degree," said Hartley.

The Kroll Global Fraud Report covered more than 830 senior executives worldwide. It is the sixth Kroll survey on business frauds and was conducted by the London-based Economist Intelligence Unit.

The survey covered crimes including theft of physical assets, intellectual property, corruption, bribery, financial fraud and other forms of wrongdoings in the Americas, Europe, Asia and Africa. The study included sectors such as finance, retail, health care and pharmaceuticals, travel, construction, consumer goods, technology, media and telecommunications.

The study finds that though there is an overall decline in business frauds in general, incidence of corruption remains a major area of concern especially in Asian and African countries.

"When you're hit by a fraud, you're immediately concerned."