PwC Management Services LP has published its 2022 Global Economic Crime Survey, examining organizations’ attitudes about fraud, financial and economic crime in what PwC describes as the current “polycrisis environment.”
The survey of 2,300 people in 68 countries found that 51 per cent of all organizations surveyed reported experiencing some form of fraud or economic crime in the last 24 months, a number which jumps to 60 per cent of companies in Canada reporting the same. They add that overall, 95 per cent of business leaders interviewed report that their crisis management capabilities need improving.
PwC adds that companies should expect that economic crime will remain a significant threat for Canadian organizations and for newer forms of economic crime to emerge. “Canadian organizations that suffered losses from fraud that were higher than US$1-million, increased by 20 per cent, compared to 2020,” they state.
The survey – Protecting the perimeter: The rise of external fraud – continues, saying almost two thirds of organizations surveyed in Canada experienced fraud in the past year. Of those responding to the survey, 63 per cent occupied C-suite positions; 71 per cent of respondents’ organizations also have annual revenues exceeding US$100-million.
“Canadian respondents reported experiencing new types of fraud and financial misconduct in the last two years, especially related to the pandemic and government relief programs, as well as supply chain issues and environmental, social and governance (ESG) programs,” they write.
On the plus side, the rate of fraud detected through advanced data analytics is nine per cent higher than the global average and suspicious activity detection is seven per cent higher than the global average. External audits being conducted are also reportedly six per cent higher than the global average.
