1、 Global Economic Crime and Fraud Survey 2022Protecting the perimeter:The rise ofexternal fraudAre sufficient controls in place for the myriad new digital technologies being deployed?Are enterprises managing risks related to a sustained hybrid work environment?Have organisations implemented the appro

2、priate policies and incentives as they emerge from the pandemic into an uncertain economy?What,exactly,is the fraud risk that companies face today?Years of effort to combat fraud through policies,training,internal controls and monitoring have helped to tamp down internally driven misconduct,even in

3、a volatile risk environment.Meanwhile,new,more impactful threats have been brewing.This years Global Economic Crime and Fraud Survey shows that organisations perimeters are vulnerable,and external fraudsters are emerging as a bigger threat.Environmental,geopolitical,financial and social pressures ar

4、e creating a risk landscape that is more volatile than ever.This volatility complicates the challenge of preventing fraud and other economic crime.As organisations act quickly to navigate change,bad actors look to exploit the potentially widening cracks in fraud defences.Fraud prevention measures ar

5、e working Theres some good news in our survey.Overall,fraud,corruption and economic crime rates show no increase since 2018,despite supply chain issues,environmental and geopolitical instability,an uncertain economy,a talent shortage and many emerging risks.Just under half of organisations(46%)repor

6、ted experiencing some form of fraud or other economic crime within the last 24 months.The tech industry is a notable exception.The growing maturity of the sector helped it identify a significant increase in fraud activity since 2020.Nearly two-thirds of technology,media and telecommunications compan

7、ies experienced some form of fraud,the highest incidence of all industries.120182020202249%47%46%Share of organisations experiencing fraud,corruption or other types of economic crimeSource:PwCs Global Economic Crime and Fraud Survey 2022 4|PwCs Global Economic Crime and Fraud Survey 2022Although rat

8、es of fraud and economic and financial crime are stable,the impacts of those crimes are substantial among both large and small organisations(as measured by annual revenues).Among companies with global annual revenues over US$10bn,52%experienced fraud during the past 24 months;within that group,nearl

9、y one in five reported that their most disruptive incident had a financial impact of more than US$50m.The share of smaller companies(those with less than US$100m in revenues)affected was lower;38%experienced fraud,of which about one in four faced a total impact of more than US$1m.What are the greate

10、st risks?Across organisations of all sizes,cybercrime poses the biggest threat,followed by customer fraud and asset misappropriation.(Our 2020 survey reached similar conclusions.)46%of surveyed organisations reported experiencing some form of fraud or other economic crime within the last 24 months.F

11、raud rates and financial impact among large and small organisationsSource:PwCs Global Economic Crime and Fraud Survey 2022 52%experienced fraud in the last 24 months.18%of those companies had US$50m or more in financial impact from their most disruptive fraud incident.38%experienced fraud in the las

12、t 24 months.22%of those companies had US$1m or more in financial impact from their collective fraud incidents.Companies with more than US$10bn in revenueCompanies with less than US$100m in revenueTypes of fraud experienced,by organisation size(in global revenue)Source:PwCs Global Economic Crime and

13、Fraud Survey 2022Less than US$100mUS$100m$1bnUS$1bn$10bnMore than US$10bnCybercrimeCybercrimeCybercrimeCustomer fraudCustomer fraudCustomer fraudCustomer fraudCybercrimeAsset misappropriationAsset misappropriationAsset misappropriationAsset misappropriation12332%41%42%35%27%32%34%32%23%23%24%31%Orga

14、nisations are doing the hard work of enhancing technical capabilities and implementing stronger internal controls.5|PwCs Global Economic Crime and Fraud Survey 20226|PwCs Global Economic Crime and Fraud Survey 2022The outlier to the dominance of cybercrime is the energy,utilities and resources(EU&R)

15、sector,where procurement fraud is the biggest threat.Of the 31%of EU&R companies experiencing crimes,nearly half reported procurement fraud.With a smaller digital footprint and fewer customer interactions than many other sectors,it makes sense that this industrys fraud profile would be different tha

16、n that of other sectors.Nonetheless,recent events have shown that cyberattacks against infrastructure could pose a looming threat in the near future.Systematic changes are helping to bolster organisations against fraud and other economic crimes.Specifically,they have implemented policies,procedures

17、and training to help employees who want to do the right thing.But the survey affirms that organisations are now doing the hard work of enhancing technical capabilities and implementing stronger internal controls and reporting measures.Two-thirds of organisations that experienced fraud discovered the

18、ir most disruptive incident through corporate controls,up seven points from 2020.Types of fraud experienced,by industryIndustrial manufacturingFinancial servicesEnergy,utilities and resourcesRetail and consumerGovernment and public sectorHealth industriesTechnology,media and telecommunicationsCyberc

19、rime50%Cybercrime40%Cybercrime36%Customer fraud37%Procurement fraud45%Customer fraud44%Cybercrime32%Customer fraud35%Asset misappropriation30%Asset misappropriation33%Asset misappropriation31%CybercrimeCybercrime38%Asset misappropriationProcurement fraudCustomer fraudCustomer fraud28%Cybercrime27%Su

20、pply chain fraudKnow-your-customer failureAccounting/financial statement fraudSource:PwCs Global Economic Crime and Fraud Survey 2022 7|PwCs Global Economic Crime and Fraud Survey 2022The pandemic created unsettling vulnerability as organisations accelerated the shift to digital operations.One brigh

21、t spot is that asset misappropriation,while still a top category of fraud,was down in the last 24 monthsperhaps,in part,because more employees are now working remotely,with limited access to company assets.At the same time,remote working increased risks beyond just digital security.For example,some

22、companies experienced increased risks to employee safety;there was a heightened risk of blackmail or physical harm to employees working from home with access to valuable corporate data.The rate of organisations experiencing disinformation fraud in the past 24 months was 15%,suggesting companies need

23、 to increase their awareness of this emerging risk.(Listen to PwCs podcast on ways to fortify against disinformation.)Past downturns,such as the 200709 recession,offer valuable lessons for organisations navigating volatility as they begin to emerge from the pandemic.History shows that fraud trends i

24、n a time of turmoil dont emerge immediately.Often,it takes 18 to 24 months for these events to become known.However,inflection points,such as the shift from a shrinking to an expanding economy,can be beacons for internal fraud identification.Much internal fraud can become visible in times of transit

25、ion because fraudster behaviour lags the shift to new goals and targets.For example,corrupt employees may be taking illegal actions to achieve sales targets that leaders know are unobtainable heading into a down economy,and therefore suspicious.External fraudsters also capitalise on inflection point

26、s,taking advantage of the market confusion,particularly with consumer-based schemes.Organised crime groups can recruit more easily in a down economy,bringing in new team members who are suddenly unemployed.As a result,theres every reason to increase scrutiny on fraud risks in a downturn,with special

27、 attention to those the organisation may not have seen before.Fraud in a downturnIN FOCUSEconomic crime due to COVID-19Share of companies that say they experienced new fraud and increased risk because of COVID-19Misconduct riskLegal riskCybercrimeInsider tradingPlatform risk New type of fraud experi

28、enced Areas of increased riskSource:PwCs Global Economic Crime and Fraud Survey 202268%13%29%15%29%72%18%40%19%40%70%of those encountering fraud experienced new incidents of fraud as a result of disruption caused by COVID-19.The perimeter is vulnerable,and the game has changedThe survey identifies a

29、n unsettling threat profile emerging.Dangerous new predatorsexternal entities that cant be controlled or easily influencedare quickly growing in strength and effectiveness.Nearly 70%of organisations experiencing fraud reported that the most disruptive incident came via an external attack or collusio

30、n between external and internal sources.And external fraudsters are immune to traditional fraud prevention tools such as codes of conduct,training and investigations.The impact of hackers and organised crime rings,which are among the most common external perpetrators,rose substantially in the last t

31、wo years.About one-third of external perpetrator cases were the result of hackers,and 28%were conducted by organised crime;both numbers reflect increases from our 2020 survey.Organisations in Europe are significantly more likely than those in other regions to experience fraud perpetrated by external

32、 actors(56%).Where an organisations most disruptive fraud derived from misconduct risks,it was significantly more likely to be caused by internal perpetrators in comparison to cyber risks(35%vs.16%).Organisations in China/Hong Kong were significantly more likely than those in other regions to experi

33、ence fraud perpetrated by collusion between internal and external actors(50%).External perpetrator 43%(41%in 2020)Internal perpetrator 31%(38%in 2020)Collusion between internal and external actors26%(21%in 2020)Main perpetrator of the most disruptive or serious fraud experiencedSource:PwCs Global Ec

34、onomic Crime and Fraud Survey 202229|PwCs Global Economic Crime and Fraud Survey 2022Organised crime groups are becoming more specialised and professional,with goals,incentives and bonus structures.They take advantage of vulnerabilities,and they invest continuously to outsmart their prey.Combatting

35、these bad actors is unlike the effort to contain internal fraud,because companies have little ability to influence or control the perpetrators actions.Several factors are converging to drive a rise in external fraud.The increased frequency of data breaches in recent years will undoubtedly continue,r

36、aising the bar considerably for companies obligated to protect the private,personally identifiable information of their customers.The breaches will also challenge the knowledge-based authentication strategies that organisations have put in place to protect against fraudsters.Bad actors are also coll

37、aborating,which increases both the volume and sophistication of attacks.Thanks to chat rooms,the dark web and cryptocurrency,specialists in data breach,false ID creation,attack methodology and other nuanced areas can connect,coordinate and transact within a growing criminal economy.(Listen to PwCs p

38、odcast on the rise of ransomware attacks.)In addition,theres a rising trend of formerly law-abiding people joining fraudster groups.The trend is particularly prevalent in nations with poor socioeconomic conditions,enabling people to rationalise such actions because they have fewer legitimate economi

39、c opportunities.Type of external perpetratorHacker31%29%28%20%15%14%12%12%10%9%CustomerOrganised crime Vendor/supplierAgent/intermediaryCompetitorJoint venture/alliance partnerShared service providerConsultant/adviserForeign stateTop external perpetrators,2020 1Customer 26%2Hacker 24%3Vendor/supplie

40、r 19%Source:PwCs Global Economic Crime and Fraud Survey 2022Platforms are the new fraud frontier Of those organisations experiencing fraud in the last two years,four in ten experienced some form of fraud connected to the digital platforms they rely on,whether that was related to know-your-customer(K

41、YC)breaches,disinformation,money laundering,terrorism financing or anti-embargo activities.The rise of digital platforms,such as social media,e-commerce or services(for example,rideshare or lodging)opens the door to myriad fraud and other economic crime risks that most companies are just beginning t

42、o appreciate.Platform risks can create a ripple effectwith the impact of fraud penetrating multiple organisational silos.Because platform fraud is an enterprise-wide problem,combatting it requires an organisation-wide,cross-functional effort with a diverse community of solvers.Understand your platfo

43、rm risks by taking our survey,and watch for deeper insights on platform fraud coming soon.311|PwCs Global Economic Crime and Fraud Survey 2022Emerging risks have the potential to cause greater disruption in the next few years.By definition,these risks are low on the radar.But they can move to the fo

44、refront quickly.For example,just 6%of organisations said they experienced anti-embargo fraud in the last 24 months.But that is likely to change in the next 24 months as global sanctions rise to the highest levels in recent history.The challenge with managing emerging fraud risks is to avoid falling

45、into the trap of only seeing what is known and not seeing what is unknown.What are those emerging fraud risks of potentially greatest concern?PwC believes at least two should be on the radar.ESG reporting fraud.Trust has become a key lever for value creation.PwCs 25th Annual Global CEO Survey highli

46、ghted the relationship between companies with a high level of trust and their ability to drive change.But trust is fragile.A perceived or real misstep in transparency can wreak havoc on brand reputation and underlying trust.With environmental,social and governance(ESG)responsibility growing in impor

47、tance to stakeholders,accuracy in ESG reporting is essential.Just 8%of those organisations encountering fraud in the last 24 months experienced ESG reporting fraud,but the incentive to commit fraud in this area is only going to increaseas will the consequences.Supply chain fraud.One in eight organis

48、ations experienced new incidents of supply chain fraud as a result of the disruption caused by COVID-19.One in five sees supply chain fraud as an area of increased risk as a result of the pandemic.Few companies are aware of the fraud and misconduct risks within their supply chain,making this an area

49、 of exposure now and into the future.Emerging threats IN FOCUS6%of organisations said they experienced anti-embargo fraud in the last 24 months.1 in 8organisations experienced new incidents of supply chain fraud as a result of the disruption caused by COVID-19.8%of those organisations encountering f

50、raud in the last 24 months experienced ESG reporting fraud.12|PwCs Global Economic Crime and Fraud Survey 2022Key considerations for protecting your perimeterRespondents to the survey indicate they are strengthening internal controls,technical capabilities and reporting to prevent and detect fraud.H

51、owever,defending against external predators requires a different set of tools.With external fraud growing,here are three considerations to help shore up your perimeter.Understand the end-to-end life cycle of customer-facing products.Take the time to identify where opportunities exist for a fraudster

52、 to exploit a product and cause financial,legal or reputational damage.How could it happen,what would it take to prevent it from happening,and what type of response is needed if it happens?Strike the proper balance between user experience and fraud controls.Protecting customer-facing channels will r

53、equire a delicate balance between ensuring that users have a great experience and detecting and stopping fraudsters.The dual objectives of keeping false positives as low as possible and catching true fraud can be achieved through a combination of fraud technology,strategy and processes.Orchestrate d

54、ata.Often,fraud signals will come from disparate,disconnected systems and are only detectable through the occasional manual review.It is crucial that fraud indicators are orchestrated into a centralised platform that can track the end-to-end life cycle of users(fraudsters or not)and generate meaning

55、ful alerts.123ConclusionPreventing fraud and other economic crimes is a complex challenge.It takes a continuous focus on policies,training and internal controls andincreasinglythe use of sophisticated technology.In this volatile environment,protecting the perimeter is essential,as all signs point to

56、 formidable bad actors becoming better and better at exploiting the cracks.13|PwCs Global Economic Crime and Fraud Survey 202261%of survey respondents sit in the C-suite.39%of respondents organisations have annual revenues greater than US$1bn(and 65%have revenues of more than US$100m).About the surv

57、eyThis years Global Economic Crime and Fraud Survey enquired about organisations attitudes towards fraud and financial and economic crime in the current environment and drew responses from 1,296 respondents in 53 countries and regions.This survey,our first snapshot of 2022,homed in on fraud trends a

58、nd conduct risk.For more than 20 years,PwCs Global Economic Crime and Fraud Survey has looked at a number of crimes,including:Accounting/financial statement fraud Anti-competition/antitrust law infringement Asset misappropriation Bribery and corruption Customer fraud Cybercrime Deceptive business pr

59、actices Human resources fraud Insider/unauthorised trading Intellectual property(IP)theft Money laundering and sanctions Procurement fraud Tax fraud14|PwCs Global Economic Crime and Fraud Survey 2022ContactsKristin RiveraGlobal Forensics Leader,Partner,PwC US Ryan MurphyUS Forensics&Investigations L

60、eader,Partner,PwC US Claire ReidUK Forensics Services Leader,Partner,PwC UK Claudia NestlerGermany Forensics Services Leader,Partner,PwC Germany Mark RigbyAustralia Forensics Services Leader,Partner,PwC Australia Sirshar Qureshi EMEA Forensics Co-Leader,Partner,PwC Czech Republic Stefan Heiner EMEA Forensics Co-Leader,Partner,PwC Germany 2022 PwC.All rights reserved.PwC refers to the PwC network and/or one or more of its member firms,each of which is a separate legal entity.Please see for further