Economic crime against businesses and other organizations continues to rise around the world. Some 37% of respondents, a 3% rise since 2011, say they have been victims of economic crime, according to PwC's 2014 Global Economic Crime Survey. And, about 25% say they have been victims of cybercrime, as fraudsters increasingly turn to technology as their main crime tool.
PwC’s global survey found that theft remains the most common form of economic crime, reported by 69% of respondents. It is followed by procurement fraud, 29%, bribery and corruption, 27%, cybercrime, 24%, and accounting fraud, 22%. Other reported crimes include human resources fraud, money laundering, intellectual property or data theft, mortgage fraud and tax fraud.
Dinesh Anand, National Leader, Forensic Service, PwC India, said, “With changing economic dynamics, especially of wealth moving towards east and sophisticated advancements in technology, organizations will have to pay special heed to anti-fraud and anti-corruption programmes as well as robust cybersecurity programmes. Notably, our survey has also seen economic crimes like money laundering, procurement fraud and HR fraud making place in the top 10 economic crimes suffered by organizations.”
Respondents also report significant collateral damage in such areas as employee’s morale, cited by 31%, and in corporate reputation and business relationships, both reported by 17%. Despite the financial and collateral effects of crime, just 3% of respondents said incidents of fraud have impacted their company’s share price.
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