• Register
Return to: Home > News > Cybercrime predicted as most disruptive fraud in the next two years: PwC

Cybercrime predicted as most disruptive fraud in the next two years: PwC

Cybercrime will become the most disruptive fraud in the next two years, according to the Global Economic Crime and Fraud survey from PwC.

The bi-annual survey of 7,200 respondents from 123 countries found that 49% have suffered fraud in their companies in the last two years, up from 36% in 2016. The most common economic crimes were asset misappropriation (45%), cybercrime (31%), consumer fraud (29%) and business misconduct (28%). PwC has attributed the increase in reporting to greater awareness and understanding. 

PwC global forensics leader Kristin Rivera said: “There is far more understanding of what fraud is and where it is taking place, particularly true of cybercrime [regarding] issues, investigations, analysis, and greater investment in controls and prevention.”

Indeed, 59% reported having an operational cyber detection plan, up from 37% in 2016. Additionally, many respondents addressed fraud prevention through corporate culture initiatives and technology. Yet despite the progress, the top impacts to an organisation affect employee morale, business relations, damage to reputation and brand strength.  Of respondents, 64% found their financial losses could reach $1m, in addition to the 41% found to be spending double what has been lost to cybercrime on investigations.

The survey found 52% of crime was committed internally, particularly from senior management (24%, up from 16% in 2016). However, crime was committed externally more often in Australia (64%), the UK (55%), Canada (58%), Argentina (44%) and the USA (48%), and commonly perpetrated by agents, shared service providers, vendors and customers. In comparison, the highest levels of economic crime were in Africa (62% up from 57%), North America (54% up from 37%) and Latin America (53% up from 28%).

“While technology has a strong role to play in monitoring and detection, when it comes to blocking that ‘last mile’ to fraud, the returns from people initiatives are likely to far exceed those from investing in another piece of technology,” Rivera added.

Top Content

    Time pressure: Facing up to mental health

    In an ‘always on’ culture, it is becoming increasingly difficult to manage a healthy work-life balance. While companies are beginning to address this problem by introducing different support systems, Joe Pickard finds more could be done to ensure the wellbeing of the professions workforce.

    read more

    Venezuela: the race for the dollar

    With a new currency following hyperinflation, large sections of the population emigrating to neighbouring countries, an economy on the brink of collapse and no apparent solution coming from the government, Jonathan Minter finds a profession struggling to stay afloat in Venezuela.

    read more

    Brazil: transparency and control

    Brazilian accountants have an optimistic view of the impact of more-regular reporting and the implications of audit controversies for the profession. Paul Golden reports.

    read more

    Argentina: looking for a clearer view

    The Argentine accounting profession continues to grapple with the impacts of a weak economy and a culture of financial corruption. Paul Golden takes a closer look.

    read more

    Blockchain: adapting to disruptive tech

    In the relatively few years since digital currencies first began using blockchain technology, the array of potential applications has grown significantly – and continues to expand. Dan Balla, Matthew Schell and Dave Uhryniak from Crowe look at how it impacts accountancy.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.