Survey: Rise of Economic Crime and 6 Other Surprising Facts
A PricewaterhouseCoopers’ (PwC) study has found that cybercrime is up 20% and is the fastest growing economic crime. This is one of just many surprising statistics from the UK version of the 2016 Global Economic Crime Survey. Here are three other facts that caught our attention:
- Only 30% of frauds were detected by suspicious transaction monitoring or data analytics, down from 37% in 2014. PwC doesn’t believe that we are generating less data but that businesses need to get back on track and use the data they generate along with analytics to identify potential frauds quickly and efficiently.
- Nearly one-third of all economic crimes in the last two years were committed by employees, and the crimes included falsifying expenses and commission payments. There has also been a shift in who commits the crime: half of the frauds were committed by those over 40, and fraud committed by those over 50 has increased to 18% from just 6% two years ago.
- 14% of respondents said that they had 100 or more incidents of fraud in the last 24 months, while 9% said they have lost more than $1 million through fraud.
American companies are facing similar challenges when it comes to fraud. The U.S. version of the same PwC study found some interesting facts as well, including:
- 10% of economic crimes are discovered by accident. This begs the question: how much other fraud is not being identified?
- Over the next two years companies can expect to be hit by various types of crime, including cybercrime, asset misappropriation and bribery and corruption.
- One in four banks have experienced anti-money laundering (AML) enforcement actions. Twelve percent (12%) of financial services firms have not conducted complete AML/CFT risk assessments. Also, many firms are challenged by their AML systems, including the need to sustain legacy systems that are expensive to scale and maintain.
So what can companies do? According to the Association of Certified Forensic Examiners (ACFE), every organization needs to develop their fraud risk management program. Components include:
- Fraud awareness
- Affirmation process
- Conflict disclosure
- Fraud risk assessment
- Reporting procedures and whistleblower protection
- Investigation process
- Corrective action
- Process evaluation and improvement
- Continuous monitoring
Do you have a case of fraud in your organization that you would like help managing? Leave a comment or send us an email so we can discuss how we can help.
About Anu Sood
Anu Sood (LinkedIn | Twitter) is the Director Marketing at CaseWare RCM and is responsible for the company’s global marketing strategy. She has over 20 years of experience in product development, product management, product marketing, corporate communications, demand generation, content marketing and strategic marketing in high-tech industries.