Global Economic Crime Survey 2016

Adjusting the Lens on Economic Crime:
Preparation brings opportunity back into focus

Today more than ever before, a passive approach to detecting and preventing economic crime is a recipe for disaster. To underscore this fact, our survey uncovered a widespread lack of confidence in local law enforcement – a phenomenon that is not limited to regions or level of economic development. The message is clear: the burden of preventing, protecting and responding to economic crime rests firmly with organisations themselves. Our survey this year focuses on three key areas – Cybercrime, Ethics and compliance programmes and Anti-Money Laundering – and explores certain common themes, including managing the risks associated with the pervasion of technology; what it means to conduct business responsibly across a widening business landscape; and integrating ethical conduct into decision-making.​ 

In addition to highlighting specific areas of economic crime worth focusing on, we emphasise the things you can do better to tackle them – implementing more sophisticated and effective measures that can not only reduce these risks, but also bring the benefits of a more threat-aware business, confident of its defences in a changing world.​

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Andrew Gordon, Global Forensic Services Leader
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  • Economic crime
  • Controls
  • Cyber threats
  • Financial technology
  • Financial crime
Economic crime

Economic crime an obstinate threat

‘Economic crime is a diversified global issue.’

  • More than one in three (36%) organisations experienced economic crime
  • Both developed and emerging markets affected
  • Company detection methods not keeping pace

What opportunities are available for countering economic crime proactively?

Controls

Controls

‘Controls must be embedded in organisational culture.’

  • Gap between internal and external fraud actor is closing
  • 1 in 5 respondents have never carried out a fraud risk assessment

What are the risks your business faces and do you actively identify vulnerable areas?

Cyber threats

Cyber threats

‘Cyber threats climb, but business preparation is not keeping pace.’

  • Cybercrime climbs to 2nd most reported economic crime affecting 32% of organisations.
  • Most companies are still not adequately prepared for – or even understand the risks faced: Only 37% of organisations have a cyber incident response plan.
  • Engagement of leadership is critical, but less than half of board members request information about their organisation’s state of cyber-readiness.

How will your cyber-response plan stand up to reality?

Financial technology

Financial technology

‘Disconnect between tone at the top and reality on the ground.’

  • 1 in 5 respondents not aware of the existence of a formal ethics and compliance programme and many are confused about who owns it internally.
  • Almost half the incidents of serious economic crimes were perpetrated by internal parties.
  • Employee morale (44%) and reputational harm (32%) cited as top forms of damage.

How is your business strategy aligned with and led by your organisational values?

Financial crime

Financial crime

‘Anti-money laundering continues to confound.’

  • 1 in 5 banks have experienced enforcement actions by a regulator – failure to curb illicit business practices may lead to personal liability.
  • More than a quarter of financial services firms have not conducted AML/CFT risk assessments across their global footprint.
  • Data quality cited by 33% of respondents as a significant technical challenge.
  • Lack of experienced AML/CFT staff is a major issue

How would your organisation fare in the face of regulatory scrutiny?

 

Participation statistics

Participation by region

8%
North America
22%
Western Europe
5%
Middle East
17%
East Europe
18%
Latin America
10%
Africa
20%
Asia Pacific

Respondents

70%
of respondents were managing the Finance, Executive Management, Audit, Compliance and Risk Management Functions
54%
of respondents employed by organisations with more than 1,000 employees, with
48%
of these participants having more than 10,000 employees
37%
of CEOs are concerned about cyber security
59%
of respondents were from multinational organisations


What does it mean for you?

More than one third (36%) of organisations have experienced economic crime in the past 24 months

Forewarned, forearmed, forward​

Economic crime is ever-evolving, and becoming a more complex issue for organisations and economies. The regulatory landscape, is also changing, bringing with it numerous challenges to doing business. With local law enforcement not necessarily perceived as able to make a material difference, the onus is squarely on the shoulders of the business community to protect itself, and its stakeholders, from economic crime. As we discuss in the three upcoming sections – dedicated to the strategically crucial areas of cybercrime, ethics and compliance programmes and anti-money laundering – our survey numbers can help uncover not only potentially troublesome red flags and trends. They can also serve as vitally important indicators of areas of opportunity for forward-thinking organisations to meet the challenges of a whole new world. To be forewarned is to be forearmed for success.​


Related content

We'll work with you to overcome complex challenges, and be by your side in the war against economic crime.

We'll work beside you to help you prepare for, respond to, and recover from a crisis. So you can confront it, withstand it and emerge stronger.

New thinking is needed by the Financial Services industry to make investment in compliance deliver more value and to tackle economic crime.

Contact us

Andrew Gordon
Global Leader, United Kingdom
Tel: +44 (0) 20 7804 4187
Email

Andrew Palmer
EMEA Leader, United Kingdom
Tel: +44 (0) 20 7212 8656
Email

Erik Skramstad
US & APA Leader, United States
Tel: +1 (617) 530 6156
Email

Trevor White
Global Economic Crime Survey Leader, South Africa
Tel: +27 (31) 271 2020
Email

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