The results of KPMG's Fraud Survey 2026, a survey of fraud at Japanese companies, were announced. Fraud had occurred at 37% of companies in the past 3 years, with internal whistleblowing the most common way it came to light.
KPMG Forensic & Risk Advisory announced the results of its Fraud Survey 2026, a survey of fraud at Japanese listed companies. The survey began in 2006 and is being conducted for the ninth time. It covers all Japanese listed companies as of 18 March 2026, with responses from 388 companies. The survey was conducted from May to July 2026, and also includes a special feature marking the 20th anniversary of the survey's launch.
The proportion of companies reporting fraud in this survey was 37%, up from 32% previously. Internal whistleblowing was the most common way fraud came to light, accounting for 56% of cases, followed by weakened or merely formal checks and balances at 54% and person-dependent business operations at 52% as root causes of fraud. The report identified the challenge as making systems and processes effective in practice, rather than merely putting them in place.
In fraud cases involving losses of at least ¥100 million, executives accounted for 21% and managers for 48% of primary perpetrators, for a combined 69%. Awareness of intelligence use was 67%, while only 15% had experience using it. Although interest in data analysis and AI use was high, implementation remained limited. In third-party risk management, 49% had identified subcontractors and sub-subcontractors, while 31% had not identified resale customers or subcontractors. Interest in using data and AI to detect fraud reached 86%, and interest in using AI reached 95%, while implementation remained at 17% and 7%, respectively.
As a special feature of the survey, the report looks back at how Japanese companies have addressed fraud over the past 20 years and considers fraud risk management for the next 20 years.