Economic Crime Around the World

THE KINGDOM OF FRAUD Economic crime or fraud is defined by a 2011 PricewaterhouseCoopers survey as the intentional use of "deceit to deprive another of money, property, or a legal right." That can mean anything from old-fashioned embezzlement to the growing incidence of cybercrime. Wwhat kinds of crimes are most common in the business world, and where are they most likely to happen? IN CONTEXT: THE STATE OF GLOO BAL ECONOMIC CRIME Average rate of organizations among all countries that Only 6% of surveyed Japanese organizations reported high reported a high level of crime: levels of economic crime. 34% 6% TYPES OF ECONOMIC CRIME WHERE IS IT HAPPENING? Asset theft, accounting fraud, and bribery remain the most common types Both first-world and developing countries are susceptible to fraud and economic crime. Kenya declared the highest prevalence of economic crime, nearly twice the average rate of the 78 countries in the global survey. of economic crime, but cybercrime is on the rise around the world and now ranks as one of the top four economic crime threats to organizations* JAPAN worldwide. Percent of organizations that Percent of organizations from each country that reported each economic crime 2009 2011 reported a high level of economic crime (40% or more) KENYA 66% ASSET MISAPPROPRIATION 67% 72% SOUTH AFRICA 60% ACCOUNTING FRAUD 38% 24% BRIBERY & CORRUPTION 27% 24% E UNITED KINGDOM 51% CYBERCRIME 1% 23% IP INFRINGEMENT 15% 7% NEW ZEALAND 50% MONEY LAUNDERING 12% 9% E SPAIN 47% TAX FRAUD 5% 4% ILLEGAL INSIDER TRADING 4% 6% a AUSTRALIA 47% ANTI-COMPETITIVE BEHAVIOR 3% 7% ESPIONAGE 3% 2% ARGENTINA 46% SUSTAINABILITY FRAUD 0% • 1% OTHER FRANCE 46% 5% 4% U.S. 45% *Includes private, public, government, and non-profit organizations. THE GREATEST RISK OF CYBERCRIME THREATS COME FROM: a MALAYSIA 44% Percent of all respondents 46% 29% 13% 12% в МЕXICO 40% Outside of the Both internal and Inside the Don't organization external perpetrators organization know 80 100 "Cyber security issues now top the list of risks 20 40 60 to watch, ahead of weapons of mass destruction and resource security." -World Economic Forum Global Risks 2011 report SOURCES: PRICEWATERHOUSECOOPERS. "GLOBAL ECONOMIC CRIME SURVEY." NOVEMBER 2011. | REUTERS.COM A COLLABORATION BETWEEN GOOD AND COLUMN FIVE