Economic crime against businesses and other organisations continues to rise around the world. 45% of Zambian respondents reported having experienced economic crime over the last 24 months, according to PwC's 2014 Global Economic Crime Survey.
PwC's global survey, the most extensive on the subject, found that asset misappropriation or theft is the most common form of economic crime in Zambia, reported by 81% of respondents. It is followed by bribery and corruption, 35%, procurement fraud, 30%, money laundering, 24% and cybercrime, 24%. Other reported crimes include mortgage fraud, human resources fraud, accounting fraud, intellectual property or data theft, and illegal insider trading.
The exact direct loss associated with economic crime is difficult to assess. Among crime victims, a total of 46% place the financial impact of economic crime on their organisation between ZMW570,000 – ZMW5,700,000 and 5% of victims – representing 4 organisations -- put the impact at more than ZMW5,700,000.
Respondents also report significant collateral damage in such areas as employee morale, cited by 41%, and in business relationships and corporate reputation, reported by 27% and 22% respectively. Despite the financial and collateral effects of crime, it does not appear to have any effect on share price as none of the Zambian respondents said incidents of fraud have impacted their company’s share price.