Financial services company, PwC says that economic crime is at a pandemic level in South Africa, following the results from a new report.<\/p>\n
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.<\/p>\n
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).<\/p>\n
A quarter of respondents indicated having suffered losses of more than $1 million.<\/p>\n
\u201cWhen 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,\u201d said Louis Strydom, Forensic Services Leader for PwC Africa.<\/p>\n
South Africa was ahead of France (68%), Zambia (61%), Kenya (61%), UK (55%), Spain (55%), and Australia (52%) in the biennial list.<\/p>\n
PwC interviewed 6,337 participants in 115 countries, with 232 organisations interviewed locally, from a broad spectrum of industries.<\/p>\n
The survey found that asset misappropriation remains the most prevalent form of economic crime reported by 68% of respondents.<\/p>\n
Asset misappropriation fraud happens when people who are entrusted to manage the assets of an organisation steal from it.<\/p>\n
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,\u00a0 and bribery and corruption (37%).<\/p>\n
Cybercrime has risen to the fourth most reported type of economic crime in South Africa, with 32% of organisations affected \u2013 on par with the global average.<\/p>\n
Below is a list of the top 10 types of economic crime reported by organisations in SA<\/p>\n
| Types of economic crime<\/th>\n | 2016<\/th>\n | 2014<\/th>\n<\/tr>\n |
|---|---|---|
| Asset misappropriation<\/td>\n | 68%<\/td>\n | 77%<\/td>\n<\/tr>\n |
| Procurement fraud<\/td>\n | 41%<\/td>\n | 59%<\/td>\n<\/tr>\n |
| Bribery and corruption<\/td>\n | 37%<\/td>\n | 52%<\/td>\n<\/tr>\n |
| Cybercrime<\/td>\n | 32%<\/td>\n | 26%<\/td>\n<\/tr>\n |
| Human resources fraud<\/td>\n | 28%<\/td>\n | 42%<\/td>\n<\/tr>\n |
| Accounting fraud<\/td>\n | 20%<\/td>\n | 35%<\/td>\n<\/tr>\n |
| Money laundering<\/td>\n | 14%<\/td>\n | 14%<\/td>\n<\/tr>\n |
| Intellectual Property infringement<\/td>\n | 8%<\/td>\n | 7%<\/td>\n<\/tr>\n |
| Tax fraud<\/td>\n | 6%<\/td>\n | 11%<\/td>\n<\/tr>\n |
| Insider trading<\/td>\n | 4%<\/td>\n | 9%<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\nMore on South Africa<\/h3>\n |