Recession Impact: Fraudulent Activities
The SAIS (South African Institute for Security) released latest statistics of fraudulent activities as an impact of the recession. Read them below
“On 18 November 2015, the SAIS hosted a conference on Risk Management and Risk Security within the Security sector. Crest Advisory Africa CEO, Nico Snyman, was invited as the Key Note speaker.”
Recession impact: fraudulent activities
The PWC Survey found that 62% of economic crimes were committed by people inside the organization and 38% by external individuals. Of fraud cases, 23% were discovered due to informal tip-offs, 21% were discovered through official whistle-blowing channels, 15% were discovered through risk management systems and 18% were discovered by accident. Almost two out of three South African organizations said they were the victims of fraud.
Did you know?
- It takes an average of 18 months to detect fraud.
- 85% of fraud is committed by insiders.
- 55% of perpetrators are managers.
- 30% of business failure is due to employee theft.
- 44% of workers feel their companies could do more to prevent fraud.
Examples of basic protective measures include:
- Clear policies and codes of conduct.
- Simple fraud prevention and detection controls built into every process.
- Whistle-blowing systems to encourage honest employees to provide tip-offs.
- Well-staffed and skilled internal audit functions.
- Zero tolerance of all fraud, regardless of the offence.
There is serious danger in not dealing with workplace fraud as it creates the perception that fraud is condoned. It may seem tempting to ask perpetrators to leave quietly especially in the case of high-level executives. “Yet this completely eliminates any element of deterrence, and creates the impression that crime does pay.” It is impossible to be aware of what is going on all the time. It is better to learn how to implement preventative processes rather than put your business and employees at risk.
- 3rd is where SA stands in the number of cybercrime victims in the world – behind Russia and China.
- 556 million is the number of people globally who have fallen victim to cybercrime each year.
- 1,5 m people a day fall victim to cybercrime. It equates to about 18 people per second.
- US$110 bn is how much cybercrime costs the global economy.
- 85% of the direct financial costs are a result of fraud, theft and repairs.
- 2 out of 3 adults online have at some stage been a victim of cybercrime.
- 46% of adults online fell victim to attacks such as malware, viruses, hacking, scams, fraud and theft in the past year.
- 4 out of 10 people have fallen victim to cybercrime on social networking platforms.
- 1 out of 6 people have no idea what their privacy settings are on their social networking profiles.
- 36% of people on social networking sites have accepted friend requests from people they do not know.
- R2,6 5bn is how much cyber-crime costs the SA economy between January 2011 and August 2012.
- R662,5m is the amount not recovered from cybercrime in SA.
Source : 2012 Norton Cybercrime Report and Magix Security.
- 1 in 436.1 emails carry a virus
- 1 in every 340.9 carry malware attacks.
- 2,189 malicious websites are blocked every day.
“Nico Snyman, Crest Advisory Africa CEO has been approved as a member of the prestigious SAIS and Crest Academy‘s courses are presently under review for endorsement by the Institute as Industry Leading training for security professionals.”