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Croatian Companies Hit with 7 Million HRK in Economic Crime

A recent survey has revealed that Croatian companies have suffered significant economic crime losses, with a staggering 39% of respondents reporting losses between 350,000 and 7 million HRK (50,000 USD to 1 million USD).

Global Comparison

Globally, the figures are similar, with 39% of organisations experiencing losses in the same range. However, a significant number of global companies (14%) have suffered even greater losses, with 5% losing over 35 million HRK (5 million USD).

Consequences of Economic Crime

The consequences of economic crime can be far- reaching, extending beyond financial loss to damage employee morale and reputational harm. In Croatia, the survey found that half of respondents reported a negative impact on employee morale, which could potentially lead to secondary fraud actions.

Perpetrators and Remedial Action

The report also highlighted the importance of corporate intelligence and background checks for external parties, as 63% of Croatian respondents cited customers and agents/intermediaries as the main perpetrators of economic crime. This is higher than the global average of 42%.

In terms of remedial action, 50% of Croatian companies notified law enforcement agencies, while 38% informed relevant regulatory authorities. Cessation of business relationships with fraudulent parties was also a common response.

Concerns about Compliance Programmes

The survey also revealed concerns about the effectiveness of compliance programmes in Croatia, with only 18% of respondents expressing confidence in their organisation’s ability to deal with cybercrime. Furthermore, nearly one-quarter of respondents reported not having carried out risk assessments in the past two years.

Recommendations

To combat economic crime effectively, the report recommends that companies invest more resources in developing internal processes and staff training on ethical obligations and external threats. Additionally, mechanisms should be established to minimize external threats and protect whistleblowers.

Conclusion

The findings highlight the need for organisations in Croatia to prioritize economic crime prevention and detection, ensuring that their compliance programmes are effective and transparent.