The Financial Services (FS) sector results from PwC’s seventh Global Economic Crime Survey are intriguing because they often depart from the trends observed in other industries’ results. For example, 45% of Financial Services organisations have suffered economic crime during the survey period, compared to only 34% across all other industries. The key message from our survey results is this: while the FS sector may be ahead of many industries in terms of prevention and detection of economic crime, more can and should be done by FS organisations. Explore the findings in detail below.
Around half of the FS respondents who have experienced economic crime during the survey period report an increase in the number of occurrences and the financial value of economic crime during the period (more so than other industries’ respondents). There are regional variations – in Asia Pacific at least half of FS respondents reported an increase; in contrast, nearly 40% of FS respondents from South & Central America reported a decrease.
The FS sector was one of the first to be targeted by cybercrime – little wonder, as there have always been significant potential financial gains to be had from subverting computerised processes and corporate controls in banks.
When it comes to fraud, there is more than one way to suffer loss. The FS sector is particularly exposed to certain types of fraud (such as money laundering) and faces unique regulatory challenges as a result.