Financial Crime World

Slovak Companies Take Steps to Combat Economic Crime, Survey Reveals

A recent survey by PwC has shed light on the prevalence of economic crime in Slovak companies and the measures they take to prevent it.

Prevalence of Economic Crime

According to the findings, 51% of Slovak companies have performed a fraud risk assessment at least once in the past 24 months. This highlights the importance of companies taking proactive steps to identify and mitigate potential risks.

Investigation Methods

The study found that three quarters of companies in Slovakia, Central Eastern Europe (CEE), and globally use internal resources to investigate identified cases of economic crime. One third of respondents also engage legal advisors, while others opt for external auditors or forensic investigators.

Response to Potential Fraud

Interestingly, 7% of Slovak companies chose not to take any action against potential fraud, instead opting to wait and see if further indicators of potential fraud arise. This percentage is higher globally, where 11% of companies took this approach.

Profile of a Fraudster

The survey also looked at the typical profile of a fraudster. Historically, the split between internal and external fraudsters was equal, but this year’s results show that in Slovakia, 52% of fraud was committed internally, while 38% was committed externally.

Factors Contributing to Fraud

In terms of preventing economic crime, companies can take steps to strengthen controls and know who they are doing business with. The survey recommends employing corporate intelligence and due diligence techniques before entering into business relationships.

Prevention Strategies

The study highlights the importance of opportunity in committing economic crime. According to respondents, the majority of internal fraud is committed because of an opportunity or ability to do so, rather than any other factor. Therefore, strengthening controls is key to preventing this type of crime.

Recommendations

  • Employ corporate intelligence and due diligence techniques before entering into business relationships
  • Know who you are doing business with
  • Strengthen controls to prevent opportunity-based fraud
  • Consider using external auditors or forensic investigators to investigate economic crime

Key Takeaways

  • 51% of Slovak companies have performed a fraud risk assessment at least once in the past 24 months
  • Three quarters of companies use internal resources to investigate economic crime
  • One third engage legal advisors, while others opt for external auditors or forensic investigators
  • 7% of Slovak companies chose not to take any action against potential fraud
  • Internal perpetrators accounted for 52% of fraud in Slovakia
  • Strengthening controls is key to preventing opportunity-based fraud