Global Economic Crime Survey, 2014: Key Highlights from the U.S.
Economic crime continues to remain in the forefront of corporate concern, posing a threat to fundamental business processes.
- 45% of organizations in the U.S. suffered from some type of fraud in the past two years, more than the global average of 37%.
- More than half of U.S. organizations that experienced fraud in the last two years reported an increase in the number of occurrences.
- 67% of U.S. respondents indicated their organizations currently have or planned to have operations in high-risk markets, compared to only 58% of global respondents.
- 57% of U.S. respondents indicated their organizations pursued opportunities in markets with high-levels of corruption risk within the past 24 months, versus 38% of global respondents.
Frauds on the Rebound
- 24% of U.S. organizations that reported economic crime experienced accounting fraud in 2009. In 2011, this dropped to 16%. In 2014, accounting fraud increased back to 23%.
- In 2014, bribery & corruption at 14% doubled from 2011 levels (7%), after dropping by more than a half since 2009 (16%).
Profiling the Perp
- The external perpetrator of fraud is closing the gap on the internal perpetrator of fraud, with U.S. organizations reporting that economic crime is committed by external actors (45% of the time) almost as often as it’s committed by internal actors (50% of the time).
- Most internal frauds are now perpetrated by middle management:
- 54% of internal frauds were committed by middle management
- There’s been a rise in the number of frauds committed by middle management:
- 45% in 2011 v. 54% in 2014
- There’s been a drop in the number of frauds committed by junior staff:
- 50% in 2011 v. 31% in 2014
- Fraud at U.S. organizations initially detected by external measures or by accident in 2014 more than doubled from 2011 levels:
- 32% in 2014 v. 15% in 2011
- Fraud at U.S. organizations was initially detected through external tip-offs more often than any other method.
- Fraud at U.S. organizations initially detected by suspicious transaction reporting plummeted by 19%:
- 11% in 2014 v. 30% in 2011
Blowing the Whistle on Fraud
- 86% of U.S. organizations have a whistleblower mechanism, compared to only 62% of global organizations.
- 83% of U.S. respondents that have whistleblower mechanisms believed they were effective.
Cybercrime is here to Stay
- 44% of U.S. organizations that experienced fraud in the past 24 months suffered from cybercrime; and 44% of all U.S. respondents indicated they thought it was likely their organization would suffer from cybercrime within the next 24 months.
- US respondents’ perception of the risks of cybercrime exceeded the global average by 23%:
- 71% of U.S. respondents perceived an increased risk of cybercrime over the past 24 months versus 48% of Global respondents
Global economic crime survey infographics