The latest edition of the Price Waterhouse Cooper (PwC) report, based on global statistics, is for the first time in a decade, showing a decline in the reported rate of economic crime. According to Daily Maverick, it however shows that higher-value fraud had increased considerably in South Africa and rates remain significantly higher than the global average.
Customer fraud, bribery and corruption, as well as financial statement fraud are at the top of the list and is expected to rise within the next two years. The report showed that between 2018 and 2020, customer fraud increased from 42% to 47%, bribery and corruption from 34% to 42% and financial statement fraud from 22% to 32%.
Senior management seem to be the major culprits now with regards to bribery, corruption and financial fraud. Junior management is still the main protagonists with regards to fraud.
SA is now lying in third position among the top ten countries globally with the highest incidence of reported crimes. the countries occupying the first two spots with the highest rate of economic crime, is China and India.
According to Tony White, the convenor of the report which had now seen the 7th consecutive edition, public and private scandals in SA such as bribery and corruption are seen as the most “disruptive economic crimes.”
Almost 60% of SA business respondents said they have policies and procedures in place including training and monitoring, only around half of all organisations in the country are dedicating any resources to risk assessment, governance and third-party management. In most of cases, these incidents were not disclosed to board members at all.
The full report can be accessed at www.pwc.com/fraudsurvey