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|
|Bribery and corruption||37%||52%|
|Human resources fraud||28%||42%|
|Intellectual Property infringement||8%||7%|