Australian business rates high on fraud hit list

On a global scale Australian enterprises are among those hardest hit by fraud attacks, according to the PricewaterhouseCoopers' 2003 Global Economic Crime Survey.

An estimated 47 per cent of businesses in Australia experienced some form of economic crime in the last two years and in the Asia Pacific region the figure was 39 per cent.

Sectors most vulnerable in Australia to white collar crime were companies in the manufacturing and industrial products sectors.

As a result 37 per cent of organisations surveyed in Australia saw cyber crime as a threat in the next five years.

In Asia-Pacific, the three most common types of economic crime were cyber crime, corruption and bribery, and product piracy.

Financial services companies reported more incidence of fraud than any other industry.

PwC said one in six banks worldwide reported they had uncovered money laundering activity in the previous two years because of improved control and compliance systems, and continued efforts to raise awareness of the crime.

Most Australian companies canvassed expected fraud to increase in the next five years. For 45 per cent of respondents, their greatest fraud risk continues to be asset misappropriation.

PwC dispute analysis and investigations partner Malcolm Shackell said: "Far from being a victimless crime, fraud [has] a lasting impact on businesses; affecting their share price and reputation.

"The risks and incidence of economic crime will not drop without substantial actions to tackle its roots."

The financial loss from economic crime was difficult to quantify, especially for cyber crime, Shackell said.

Nearly half of the companies in Australia that reported fraud were unable to recover any of their losses, the survey found.

Moreover, such losses were rarely recovered and unlikely to be insured, the report showed.

Astonishingly 90 per cent of organisations in Asia-Pacific that suffered from economic crime recovered only 20 per cent or less of the amount lost, PwC said. Also, fewer than half of the businesses surveyed globally had insured against fraud losses.

Larger enterprises, with more than 1000 employees were most vulnerable to fraud.

Factors amplifying bigger detection rates in large companies included investment in unfamiliar overseas markets, the transfer of management control, and investment in sophisticated fraud risk management systems, according to the survey.

"A preventative anti-fraud regime should consist of an ongoing assessment of the real risks and vulnerabilities to fraud within an organisation; senior management actively communicating a company’s fraud policy; developing policies to encourage and protect whistleblowers and developing a robust fraud response plan based on worst-case scenarios,” Shackell said. The PwC Global Economic Crime Survey 2003 was based on 3263 interviews in 50 countries with CEOs, CFOs and officers responsible for detecting or preventing economic crime.

The full report can be found at http://www.pwcglobal.com/extweb/ncsurvres.nsf/docid/8296038057E60CD485256D57005B7E3D/

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Helen Han

Computerworld
Show Comments

Cool Tech

Bang and Olufsen Beosound Stage - Dolby Atmos Soundbar

Learn more >

Toys for Boys

ASUS ROG, ACRONYM partner for Special Edition Zephyrus G14

Learn more >

Sony WF-1000XM3 Wireless Noise Cancelling Headphones

Learn more >

Nakamichi Delta 100 3-Way Hi Fi Speaker System

Learn more >

Family Friendly

Philips Sonicare Diamond Clean 9000 Toothbrush

Learn more >

Mario Kart Live: Home Circuit for Nintendo Switch

Learn more >

Stocking Stuffer

SunnyBunny Snowflakes 20 LED Solar Powered Fairy String

Learn more >

Teac 7 inch Swivel Screen Portable DVD Player

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?