Companies world over are shockingly lax with big economic crime and fraud, shows latest survey

• Only 56% of the companies surveyed by PwC conducted an investigation into the worst incident, and barely a third reported it to the Board of Directors.
• Only 44% took disciplinary action against the employees accused of misconduct, in compliance with regulations.
• Losses due to fraud amounted to over $42 billion in the last 24 months.

Fraud and economic crime rates remain at record highs, impacting more companies in more diverse ways than ever before, said the latest PwC survey, which pegged the resulting losses at over $42 billion in the last 24 months.

However, companies showed alarming laxity when it comes to disclosing such frauds and economic crimes. Only 56% of the companies surveyed by PwC conducted an investigation into the worst incident, and barely a third reported it to the Board of Directors, according to the survey. Only 44% took disciplinary action against the employees accused of misconduct, in compliance with regulations.


The scale of the apathy is shocking because 72% of the over 5,000 respondents were companies that have an annual revenue of over $10 million.

The top four types of fraud hurting companies customer fraud, cyber crime, asset misappropriation, as well as bribery and corruption. "Nearly half of reported incidences resulting in losses of US$100 million or more were committed by insiders," the survey concluded.



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