Global economic crime and fraud survey 2018 South Africa

The dawn of proactivity

Countering threats from inside and out

The dawn of proactivity - get on board or get left behind

The South African edition of PwC's Global Economic Crime and Fraud Survey finds that economic crime continues to disrupt business, with this year’s results showing a steep incline in reported instances of economic crime in South Africa - with 77% of South African organisations saying that they have experienced economic crime in the past two years.

Beyond offering valuable data on the evolution and current state of fraud among our nearly 300 respondents from South Africa alone, this year’s Global Economic Crime and Fraud Survey sheds much-needed light on some of the most important strategic challenges confronting every organisation - from compliance, culture and crisis response to new perspectives on accountability, technology and cybercrime.

We hope that this report will help shed light on these areas, areas that organisations have stopped seeing and will prompt them to take a closer look and identify the gaps that exist. Our wish is for awareness to be further heightened and for a new dawn to break - the dawn of proactivity in the fight against economic crime.

Rising rates of economic crime continue to disrupt business

  • South African organisations that have experienced economic crime is now at a staggering 77%!
  • Companies today face fraud risk from various avenues – internal, external, regulatory and reputational
  • Senior management taking front stage as a growing threat from within organisations
  • The face of the threat evolves as fraud committed by consumers comes out of the shadows to rank as second most reported economic crime

How will you reassure investors when your tone at the top does not correspond with action from the top?

Detection of economic crime takes on a more proactive stance

  • Organisations taking back control over the detection of economic crime
  • Signs of increased spending being committed to combating economic crime and fraud
  • Environments within organisations more receptive to trusting internal tip-off processes
  • Heightened levels of awareness among the executive suite correspond with increased levels of accountability exercised by the jury of public opinion

Is your organisation following the trend of increased awareness or will you be found wanting?

Regulatory risk driving corporate behaviour, but reputation has become key

  • Increased levels of regulatory scrutiny and enforcement seen globally
  • 71% of respondents expect recent geopolitical regulatory changes to result in changes to enforcement
  • Only 37% of respondents have conducted an anti-bribery / anti-corruption risk assessment
  • One in three organisations cite business misconduct as an emerging threat

How will you fare when judged by the jury of public opinion?

True cost of economic crime a cause for great concern

  • 19% of organisations have had to spend between twice and ten times as much on investigations as the original amount lost to economic crime
  • Rightly or wrongly, CEO and board increasingly being held accountable
  • Investment in people seen as an effective antidote to fraud

How do you change your policies from words on paper to an indication of your organisational culture?

 

Contact us

Trevor White
Partner , PwC South Africa
Tel: +27 (0)31 271 2020
Email

Trevor Hills
Partner , PwC South Africa
Tel: +27 (0)11 797 5526
Email

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