Cyprus Sees Wave of Financial Fraud Cases: Study Reveals Extent of Crime in Small Economy
Alarming Extent of Financial Fraud in Cyprus
A recent study has revealed the shocking extent of financial fraud in Cyprus, with a staggering 85.8% of companies in the small economy reporting instances of fraudulent activity over the past five years.
No Industry or Company Size Immune to Fraud
The research, conducted by a team of academics, surveyed 600 randomly selected organizations in Cyprus and found that no industry or size of company is immune from fraud. Despite executives being aware of the problem, they have been unable to prevent it, with many feeling reluctant to participate in the study due to its sensitive nature.
Little Effect from Deterrent Measures
The study also investigated the deterrent impact of measures such as codes of conduct and audit committees, finding that these had little effect in preventing fraud. The types of fraud least tolerated by companies were identified as embezzlement and bribery, while those who posed the greatest risk to the local economic environment were found to be individuals with a history of criminal activity.
Actions Taken when Fraud is Identified
The research explored the actions taken by companies when fraud is identified, revealing that many opted for internal investigations rather than involving law enforcement agencies.
Study’s Findings and Recommendations
The study’s findings have significant implications for industry stakeholders and regulatory authorities in Cyprus, highlighting the need for greater vigilance and cooperation to combat financial fraud. The authors of the study are calling for the establishment of a specialized fraud investigation team and forensic accountants to tackle the problem.
Value of the Research
This research is the first in-depth attempt to investigate fraud in a small economy such as Cyprus, adding to existing knowledge on the subject. As such, it has significant value for stakeholders and policymakers seeking to understand and combat financial fraud in smaller economies.
- Highlights the need for greater vigilance and cooperation to combat financial fraud
- Calls for the establishment of a specialized fraud investigation team and forensic accountants
- Provides valuable insights into the extent and nature of financial fraud in Cyprus
- Adds to existing knowledge on the subject, making it a useful resource for stakeholders and policymakers