PwC says threat is spreading, banks are investing more on security
Two new reports highlight the exponential rise in risk of economic fraud facing Canadian companies and financial institutions.
In its Economic Crime and Fraud Survey released Wednesday, PricewaterhouseCoopers (PwC) says that 55% of Canadian firms polled said that they had suffered fraud in the past two years, up from 37% in 2016.
Cybercrime has become the most reported crime experienced by organizations in Canada over the past two years, with 46% reporting an incident; that’s higher than the global average of 31%.
Asset misappropriation (38%) and consumer fraud (38%) complete the top 3 economic crimes Canadian firms faced in recent years.
"Fraudsters are more sophisticated than ever and so organizations must think about fraud dynamically to stay ahead. In an era of radical transparency, companies often don't get to decide when an issue becomes a crisis" says Domenic Marino, National Forensics and Disputes Services Leader, PwC Canada.
While 58% of the economic crimes reported involved external fraudsters, more than a third were committed by someone within the organization.
"Organizations need to invest heavily in their people and technologies to fight fraud and manage it proactively. The cost of economic crime is measured not only in dollars but also in reputation and trust," added Marino.
Cybercrime will be the most disruptive factor for Canadian financial services over the next two years according to 52% of industry executives surveyed. The threat has prompted 93% of leaders to invest more in cybersecutity
"Managing cyber risk is top of mind for all Canadian banks and they are working together, developing strong cybersecurity strategies and sharing leading practices and industry trends," says Diane Kazarian, National Financial Services Leader at PwC Canada. "Creating an integrated approach to manage cyber risk solidifies Canada as leaders in this sector."
