What's the economic crime picture in the region?
With over 5,000 responses from senior executives around the world, including 91 Hungarian companies, ours is the most comprehensive global survey of economic crime available to businesses.
Asset misappropriation (63% of companies) is the most common economic crime, followed by bribery and corruption (38%) money laundering (25%), procurement fraud (25%) and cybercrime (17% of companies).
Almost one in five Hungarian respondents said that their company was asked to pay a bribe in the last 24 months, and one in three respondents believe that their company lost an opportunity to a competitor that paid a bribe.
Corruption is more common in Hungary (38%) than in the CEE region (34%) or globally (27%).
The share of respondents experiencing cybercrime increased four-fold, from 4% to 17%, and is expected to rise further. About a third of respondents indicated that their perception of cybercrime risks has increased over the last 24 months, compared to 14% in 2011.
External parties (vendors and customers) are the typical perpetrators of economic crime (58%). Fraud committed by vendors (21%) is twice as common as in the region (11%) or globally (10%).
The share of internal perpetrators is 42%, which is slightly lower than in the CEE region (46%). The typical internal fraudster is a 31-40-year-old male who has been with the company for three to five years.
In the case of internal perpetrators, the organisations usually notify the law enforcement authorities (70%) or take civil action (60%) – these figures exceed both CEE and global results. However, internal fraudsters are fired in only half of the cases (50%), which is way below regional (78%) and global (79%) levels.
Similarly, in the case of external perpetrators, organisations notify law enforcement (50%); or take civil action (57%), but business relationships are discontinued only in a third of all cases.
Companies are taking a stronger stance against fraud: no respondents said that their organisation did nothing in response to an internal fraud allegation, compared to 22% in 2011.