Fraud increases as economic climate bites
16 Jan 2012
Businesses may be more likely to need the services of
fraud lawyers in the
coming years if new statistics are anything to go by.
According to PwC's latest Global Economic Crime Survey, public
sector fraud is on the rise globally, but firms also need to be
aware of the growing risk of internal fraud and
cyber
crime.
It revealed that the tough economic and financial climate and a
series of public sector cuts around the world may be the cause
behind the rise in fraud levels.
In the poll of over 180 worldwide organisations, 46 per cent of
respondents from government and public sector firms claimed to have
experienced one or more incidents of economic crime in the last
year.
This is well above the 37 per cent seen in 2009 and higher than the
average of 34 per cent seen across all sectors.
Furthermore, of the economic crimes committed in the last 12
months, around two-thirds included the involvement of employees, up
from 50 per cent in 2009.
The survey found that the typical internal fraudster is a male in
the 40s in a junior position but with more than five years
experience in the firm, however public sector organisation were
less likely to dismiss those found to have committed internal fraud
than other sectors.
"If public sector organisations are to adopt a zero tolerance
approach to economic crime, they need to consider seriously the
actions taken against fraudulent behaviour," said Ian Elliott,
partner, forensic services at PwC.
In October, law enforcement agencies, government groups and
industry representatives joined forces to create a new group called
Fighting Fraud Together in a bid to tackle the growing problem in
the UK.
