PHOTO
Businesses in the Middle East are impacted more than ever by fraud and economic crimes, a PwC survey has revealed.
Fraud committed by business customers topped the list of all crimes experienced at 47 percent, up from 36 percent in 2018. According to the report, Middle East businesses see customer fraud and procurement fraud as the most disruptive of all economic crimes.
Procurement fraud for Middle East businesses saw the biggest increase, rising to 42 percent from 22 percent in 2018.
The Middle East Economic Crime and Fraud Survey examined responses from 8 countries in the Middle East and PwC globally examined responses from 99 countries around the world.
The Middle East region and North America (up 41 percent from 32 percent in 2018) are the regions that experienced the biggest increases in customer fraud.
More than half of organisations in the Middle East responded to economic crime by implementing and enhancing controls, and nearly three quarters of respondents conducted an investigation following an incident, PwC said.
However, less than a third reported instances of economic crime to their board, but of the organisations who did, 68 percent ended up in a better place, it added.
“With the rising rate of organisations falling victim to economic crime, a greater focus is needed to deploy the right talent and technologies to proactively build anti-fraud frameworks that allow businesses in the Middle East to identify fraud risks, respond quickly and ultimately emerge stronger,” Achraf El Zaim, PwC Middle East’s Forensics Leader said.
The global report finds that more than 60 percent of organisations are beginning to employ advanced technologies such as artificial intelligence and machine learning to combat fraud, corruption or other economic crime.
The report notes however that concerns about deploying technology are linked to cost, insufficient expertise and limited resources.
The benefit in using technology to fight fraud is undeniable but organisations must recognise that using tools and technologies alone does not amount to an anti-fraud programme, PwC said.
(Writing by Gerard Aoun; editing by Seban Scaria)
#middleeast #businesses #fraud #global #technology
Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.
© ZAWYA 2020
