Corporate fraud on the rise, study says.

• Position: Washington PULSE

Incidents of procurement fraud in Afghanistan, Iraq and the reconstruction following Hurricane Katrina suggest that the threat of misconduct by government contractors is growing, according to a recent PricewaterhouseCoopers report, titled "Predicting the Unpredictable: Protecting Aerospace and Defense Companies Against Fraud, Reputation and Misconduct risk."

The 2005 PricewaterhouseCoopers Global Economic Crime Survey revealed that 30 percent of companies in the aerospace and defense sector have been involved in some type of fraud.

"The aerospace and defense industry faces unique risks because of the nature of procurement regulations and the long-term and large-scale contracts inherent in the industry," said Scott Thompson, of PricewaterhouseCoopers.

The report...