Scams and fraud are costing many firms millions of dollars

Compared to the worldwide average, businesses in the United Kingdom are more likely to be the victims of fraud (opens in new tab) and other types of economic crime.

According to the Global Economic Crime Survey, a new PwC study, this is the case. Over the last two years, 64 percent of UK businesses have been affected by such an event, an increase over the previous year’s 56 percent and the global average of 46 percent, according to a survey of 1,296 respondents.

Cybercrime is the most prevalent sort of fraud, with a third of victims (32 percent) reporting that they have been the victim of a hack. Despite the fact that this number has decreased since the last 2020 survey, analysts believe that something altogether else is at work here.

Preventing others from taking advantage of you

Fran Marwood, Partner and Head of Digital & Forensic Investigations, believes that some of the trends in the industry are short-lived, such as cases of fraud and misbehaviour staying unnoticed while conventional controls and corporate culture develop to keep pace with remote working.

In other words, the number of cybercrime occurrences hasn’t decreased; rather, companies aren’t reporting them as quickly as they used to. She did add, though, that security was tightened up at certain companies.

As a result of the investments companies have made in comprehensive compliance processes, cyber defences, and fraud prevention procedures, certain occurrences of economic crime have been decreased.

The emergence of the Covid-19 epidemic and remote working has resulted in supply chain fraud accounting for almost a fifth (19 percent) of all fraud instances.

Globally, foreign fraudsters were responsible for just over half (51%) of the assaults in the UK. A client, a hacker, and a vendor/supplier are the three most common external fraudsters.