Financial Crime World

Undetected Cases: The Silent Epidemic in Corporate Crime

A Growing Concern

A recent survey by PricewaterhouseCoopers has revealed that undetected cases of corporate crime continue to plague companies worldwide. Despite efforts to implement controls and detection systems, many organizations remain vulnerable to fraud and other forms of economic crime.

The Scope of the Problem

According to the Global Economic Crime Survey 2007, only 14.6% of detected cases in Indonesia were initially reported through internal hotlines, while a significant number (26.8%) were discovered by accident. This highlights the need for companies to continuously monitor and update their controls and detection systems to prevent fraudsters from finding ways to circumvent them.

The Role of Company Culture

  • Effective ethical guidelines and compliance programs are essential in promoting a positive organizational culture
  • Pressure to perform, unclear communication channels, and unrealistic management expectations can erode these efforts
  • Setting the tone at the top is crucial, with CEOs and senior executives setting an example for employees to follow

Consequences of Inaction

  • Significant damage can be done to ongoing staff morale in companies where senior management is involved in corporate crime
  • Failure to punish senior management appropriately can fuel employee discontent and erode corporate culture

The Importance of Continuous Monitoring

The PricewaterhouseCoopers Global Economic Crime Survey 2007 interviewed 5,428 leading organizations globally, including 75 in Indonesia. The survey’s findings underscore the importance of continuous monitoring and updating of controls and detection systems to stay ahead of fraudsters.

Contact Information

Learn More

Visit our website at www.pwc.com/id to learn more about the PricewaterhouseCoopers Global Economic Crime Survey 2007 and how you can protect your organization from corporate crime.