Financial Crime World

Fraud on the Rise: Regulators Crack Down as Public Demands Accountability

A Growing Concern for Regulators and Companies

A recent survey has revealed that a majority of economic crimes in Namibia are committed by internal actors, sparking a wave of scrutiny from regulators and the public. The report highlights the need for increased accountability and transparency across both private and public sectors.

Who is Committing Economic Crimes?

The survey found that:

  • 58% of economic crimes in Namibia were committed by internal actors
  • Senior management was responsible for 16% of reported internal frauds

The Consequences of Fraud

The cost of fraud and its aftermath can be substantial, with investigations costing up to ten times as much as the fraud itself. In response, many companies are increasing their spending on investigations and other interventions to contain reputational damage.

What Can Companies Do?

To combat fraud, regulators are demanding more accountability from companies, with a focus on the C-suite and boardrooms. The report emphasizes the importance of:

  • Embedding up-to-date fraud data analytics from the start, particularly among start-up companies
  • Having a formal business ethics and compliance programme in place
  • CEOs and boards taking a proactive approach to managing risk

Key Findings

  • 92% of serious incidents of fraud were brought to the attention of senior management
  • 73% of Namibian respondents indicated that their organization had a formal business ethics and compliance programme in place
  • CEOs and boards are expected to take a proactive approach to managing risk

Conclusion

The rise of fraud and economic crime is a pressing concern for regulators, companies, and the public. As the cost of fraud and its aftermath continues to mount, it is essential that organizations prioritize transparency, accountability, and ethical conduct. The start-up generation has the potential to lead the way in this regard, with their fresh perspective on fraud data analytics and commitment to upholding high standards of integrity.