Corporate fraud is rife and nearly half of all embezzlements are perpetrated by senior executives, according to a survey by analysts Ernst & Young.
Sixty per cent of firms polled - including a number from the Republic - said they were defrauded in the last year, with 13 per cent of losses estimated at over €1 million.
But while corporate fraud is as endemic in the Republic as anywhere else in the world, there is much less awareness of the problem here, said Mr Cyril Maybury, partner in charge of litigation and forensic accountancy at Ernst & Young Dublin.
"The true cost of fraud is greater than just the direct loss because of the impact on reputation, management time, morale and loss of trust.
"The events of 2001, both worldwide and closer to home, have shown that when fraud strikes the result can be catastrophic," said Mr Maybury.
As the economy continues to cool, it is likely that more and more cases of fraud will come to light, he predicted.
"Frauds tend to be discovered during slowdowns in the economic cycle and as a result the current time presents many new challenges to management teams."
