PWC recently released its 2018 Global Economic Crime and Fraud Survey which highlighted several issues associated with knowledge of problems associated with fraud and economic crime in terms of the individual risk. Misappropriation of assets, consumer fraud and cybercrime were the most frequently reported crimes.
- 49% of the survey’s respondents indicated they had been the victims of economic crimes and fraud up from 36% in 2016.
- Fewer than half of the surveyed respondents indicated they conducted a risk assessment within the past two years.
- Internal actors were the most disruptive perpetrators of fraud, increasing from 46% in 2016 to 52% in 2018.
- Third parties such as vendors and customers are also a large threat and blind spot within organizations.
- Business misconduct and consumer fraud have also increased within the last two years. 28% of respondents indicated they had been the victim of business misconduct while 29% of respondents had experienced fraud. These occurrences highlight the positive side of joining together compliance, ethics and enterprise risk management to ensure that fraudulent activities will not be missed or ignored.
- 46% of respondents indicated their organization had spent more on investigating and intervening in fraudulent situations than the cost of the fraud itself.
- 29% had indicated they spent twice as much on investigation and prevention than was lost even in the most disruptive economic crimes.
- The most commonly reported cyber-attacks were malware (36%) phishing (33%) and network scanning (13%).
- More than one-third of respondents were the targets of either malware or phishing attacks. Reputational risk associated with fraud and economic crimes has led to an increase in demand for accountability in both public and private sectors outside of the regulations organizations must comply with.
- Nevertheless, 83% of CEO’s indicated a negative impact on revenue after a well-managed crisis.
Read the full survey here.