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Economic crimeWhat you need to know
Most commonly reported types of economic crime
The C-Suite gets the message
37%
Economic crime continues to be a major concern for organisations of all sizes, across all regions and in virtually every sector. One in three organisations reports being hit by economic crime.
Five types of frauds are consistently reported – asset misappropriation, procurement fraud, bribery and corruption, cybercrime and accounting fraud.
$ £
69% 29% 27% 24% 22%
Where does economic crime occur?Economic crime is a pervasive global threat. The highest levels of economic crime are consistently reported by respondents in Africa (50%) and North America (41%).
50%
41%
39%
35%
35%
32%
21%
North America
Latin America
Africa
Western EuropeEastern Europe
Middle East
Asia Pacific
49%of global CEOs are concerned about cyber threats to their organisation
53%are concerned about the effect of bribery and corruption on their business
Processes under threat
0
10
20
30
40
50
43%
2001 2003 2005 2007 2009 2011 2014
37%45% 43%
30%34% 37%
Reported global fraud rates
Asset misappropriation
Procurement fraud
Bribery & corruption
Cybercrime Accounting fraud
43%are concerned about inability to protect intellectual property
Which industries are at risk?By industry, economic crime is most commonly reported in the financial services, retail and consumer, and communications sectors. Nearly 50% of respondents in each said they had been crime victims.
Govt/state owned enterprises
Manufacturing
InsuranceTransportation & logistics
Engineering & contruction
Other
Energy, utilities & mining
Entertainment & media
Aerospace & defence
Automotive
Pharma & life sciences
ChemicalsTechnology
Professional services
Communications
Financial services
Hospitality & leisure
Retail & consumer49%
49%
48%
41%
41%
36%35%34%
34%33%
31%
31%
28%
28%
27%27%
27%20%
salesonboarding internationalexpansion
marketingsupply chainrecruitment
data securitypayments
procurement
intellectualproperty vendor selection
logistics
distribution
tax compliance
What’s the impact on your business?Businesses face threats from both internal and external sources and multiple angles. The internal threat has the greatest impact when senior managers are involved.
Profile of a typical internal fraudsterGender maleAge 31-40 yearsLength of service 6 or more yearsEducation level 1st degree, graduate
episodic crime systemic crime: erodes the integrity of employees
Reported bribery and corruption by industry% of all respondents who experienced bribery and corruption activity over the survey period
Engineering & construction
Energy, utilities & mining
Govt/state owned enterprises
Technology
Pharmaceuticals &life sciences
Communications
Entertainment & media
Professional servicesFinancial services
Other industries
Insurance
Hospitality & leisure
Retail & consumer
Global
Industrial products
Transportation & logistics
50%
42%
35%
32%
31%
30%30%28%
27%
25%
24%
24%
22%
19%18% 14%
Q How concerned are you about the following potential business threats to your organisation?Bribery & corruption
Q How concerned are you about the following potential business threats to your organisation?Cyber threats including lack of data security
Q How concerned are you about the following potential business threats to your organisation?Inability to protect intellectual property
Economic crimes threaten the basic processes common to all businesses – paying and collecting, buying and selling, growing and expanding, sourcing and supply chain.
Economic crime erodes employee integrity, your reputation and the bottom line
Data from PwC’s 17th Annual Global CEO Survey