Asset theft remains the most common type of fraud that companies face, but it’s cyber crime that Canadian firms are increasingly concerned about, according to results of PricewaterhouseCoopers LLP’s (PwC) economic crime survey released on Thursday.
The PwC report finds that “asset misappropriation” — including everything from ordinary theft to embezzlement — is far and away the most common type of crime that Canadian firms face, with 62% reporting that they have experienced it in one form or another. Cyber crime ranks a distant second at 28%.
However, when companies were asked about their future fraud concerns, they indicated that cyber crime is now their top worry. The survey found that 38% say that they believe their organization will “likely” experience cybercrime over the next 24 months, whereas 30% expect to see asset misappropriation and 19% forecast procurement fraud. In addition, the survey found that 59% of Canadian survey participants believe that cybercrime is on the rise compared with 47% in 2014.
“The stark increase in how many organizations expect to be affected by cybercrime leads us to believe they know they need to be ‘cyber-aware’,” the PwC report says.
Yet, the PwC report also notes that 43% believe that government agencies do not have the skill, or the resources, to properly investigate cybercrime. Thus, the PwC report states that this indicates companies must be responsible for their own defences, even though the survey also finds that about a quarter of firms (26%) haven’t carried out any sort of fraud risk assessment in the past 24 months.
“Economic crime is still pervasive in Canada as it continues to find new ways to infiltrate all types of businesses. Defensive measures should be part of any organization’s strategy and culture, not just the responsibility of one person or team,” said Lori-Ann Beausoleil, national leader, forensic services, at PwC Canada.
The PwC report also notes that employees perpetrate almost half of frauds. At the same time, the report says that employees are often affected significantly when their company falls victim to economic crime, noting that 41% of Canadian firms reported a “medium to high impact to employee morale” from economic crime. “Embedding compliance within the company’s culture and values is essential,” PwC concludes.