Rapidly rising defense spending across EU states is creating new opportunities for
fraudsters. The director of the EU’s anti-fraud agency has warned that states that are
funding rearmament must increase their fraud protections. Companies and investors
in the sector should therefore expect more fraud activity and more scrutiny.
Speaking to the Financial Times on April 20, Petr Klement, director of OLAF, said the
money being allocated to defense is a “magnet” for fraudsters. He revealed that his
organization is receiving increasing tip-offs of “wrongdoing in the defense area.”
Research projects and procurement are common targets.
