Top 10 ways people are stealing money from your business in SA

Financial services company, PwC says that economic crime is at a pandemic level in South Africa, following the results from a new report.

PwC said that 69% of organisations surveyed in the country report being victims of economic crime – the highest rate in the world over the past two years.

The consultancy said that while 43% of local organisations have reported having lost less than $100,000 (R1.6 million) to economic crime over the last 24 months, a fifth of respondents experienced losses of between $100,000 and $1 million (R15.7 million).

A quarter of respondents indicated having suffered losses of more than $1 million.

“When compared to the global statistic of 36%, we are faced with the stark reality that economic crime is at a pandemic level in South Africa. No sector or region is immune from economic crime,” said Louis Strydom, Forensic Services Leader for PwC Africa.

South Africa was ahead of France (68%), Zambia (61%), Kenya (61%), UK (55%), Spain (55%), and Australia (52%) in the biennial list.

PwC interviewed 6,337 participants in 115 countries, with 232 organisations interviewed locally, from a broad spectrum of industries.

The survey found that asset misappropriation remains the most prevalent form of economic crime reported by 68% of respondents.

Asset misappropriation fraud happens when people who are entrusted to manage the assets of an organisation steal from it.

It is followed by procurement fraud (41%) – defined as illegal conduct by which the offender gains an advantage, avoids an obligation or causes damage to his organisation,  and bribery and corruption (37%).

Cybercrime has risen to the fourth most reported type of economic crime in South Africa, with 32% of organisations affected – on par with the global average.

Below is a list of the top 10 types of economic crime reported by organisations in SA

Types of economic crime 2016 2014
Asset misappropriation 68% 77%
Procurement fraud 41% 59%
Bribery and corruption 37% 52%
Cybercrime 32% 26%
Human resources fraud 28% 42%
Accounting fraud 20% 35%
Money laundering 14% 14%
Intellectual Property infringement 8% 7%
Tax fraud 6% 11%
Insider trading 4% 9%

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Top 10 ways people are stealing money from your business in SA