Financial Crime World

Financial Crime Statistics and Trends in Ukraine Leave a Trail of Destruction

Alarming Figures: A Staggering 51% of Ukrainian Respondents Have Experienced Fraud

A recent survey reveals that a staggering 51% of Ukrainian respondents have experienced fraud in the last 24 months, leaving many companies reeling from the financial fallout. The situation is dire, with 47% of companies reporting asset misappropriation and bribery and corruption. External perpetrators are increasingly to blame, with 41% of fraud incidents attributed to them.

Unpreparedness: Only 59% Conducted an Investigation into Their Worst Fraud Incident

Despite the alarming statistics, a significant proportion of Ukrainian organizations remain woefully unprepared to tackle the issue. Only 59% conducted an investigation into their worst fraud incident, while just one-third reported it to their board.

Global Economic Crime and Fraud Survey: Key Findings

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The global economic crime and fraud survey by PwC reveals that Ukraine-based companies are bearing the brunt of the financial crime wave. The continued rise of fraud is posing difficult questions for organizations:

  • Is our risk management programme agile enough to meet the dynamic challenges thrown up by a globalized business environment?
  • Are we leveraging technology effectively?
  • How are we responding in crisis situations?
  • And are we prepared for the worst-case scenarios?

Top Types of Fraud and Lack of Due Diligence

The survey highlights several key findings that are cause for concern:

  • Asset misappropriation and bribery and corruption are the top types of fraud reported, with 41% of companies losing between $50,000 and $1 million over the last 24 months.
  • Nearly half of respondents do not perform or only perform informal risk-based due diligence and ongoing monitoring of third-parties.

Vulnerability to Financial Crime

A significant proportion of organizations lack dedicated risk programmes, leaving them vulnerable to financial crime. When fraud does occur, many companies fail to investigate, with 41% not conducting an investigation after the last major fraud incident.

What Can Ukrainian Companies Do?

To find their way out of the fraud labyrinth, Ukrainian companies must:

  • Identify, rank, and address risks
  • Back-up anti-fraud technology with the right governance, expertise, and monitoring
  • Take notice of fraud when it happens

Responding to Financial Crimes

When responding to financial crimes, organizations must:

  • Get to the root of the problem
  • Seek external assistance to investigate
  • Disclose to board and government authorities

Emerging Stronger from the Fraud Labyrinth

Finally, emerging stronger requires:

  • Enhancing internal controls, policies, and procedures
  • Introducing new technologies
  • Conducting training

The Time for Action is Now

Ukrainian companies must take concrete steps to prevent financial crime and mitigate its impact. Only then can they hope to emerge stronger from the fraud labyrinth and build a more secure future.