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