Thailand Economic Crime and Fraud Survey 2020: Key Findings
Lack of Technology Adoption Hinders Efforts to Combat Fraud
The Thailand Economic Crime and Fraud Survey 2020 conducted by PwC reveals a significant gap in technology adoption among organizations. The report highlights the following key findings:
- Limited technology implementation: Only 29% of respondents implemented or upgraded technology over the last 24 months to help them fight fraud and other economic crimes.
- Cost as a major obstacle: The main obstacle to companies deploying technology to fight crime is cost.
Fraud Prevention Programs: A Mixed Picture
The survey reveals that only about half of all respondents have formal fraud prevention programs in place. Furthermore:
- Few best practices followed: Fewer than 10% of fraud programs follow best practice across a range of categories, including:
- Committing dedicated resources and compliance experts (8%)
- Prioritizing the budget for the program (less than 10%)
Risk Management: A Critical Gap
The report highlights a significant gap in risk management among organizations:
- Crisis management programs: Only 7% of respondents have a crisis management program in place to help them manage unforeseeable risks.
- Third-party due diligence and monitoring: One in three respondents don’t have a third-party due diligence or monitoring program in place to protect against external fraud.
Incident Response: Room for Improvement
The survey reveals that incident response processes are not adequately established among organizations:
- Documented investigation and discipline processes: Only 59% of respondents have documented investigation and discipline processes in place.
- Investigation and tracking outcomes: Only 55% of respondents conducted an investigation after discovering an incident, and just 12% have a formal process in place to track the outcomes of investigations.
Benefits of Effective Response
The report highlights the benefits of effective response to economic crimes:
- Improved operating effectiveness: More than half (57%) of organizations that took remedial action in response to an incidence of fraud reported that they believe their organization is now in a better place in terms of its operating effectiveness, workplace morale, and defenses against future incidents.
- Streamlined operations: As many as 68% said that they streamlined and improved operations as a result of their experience with crime.
- Fewer repeat incidents: 40% reported fewer repeat incidents, and 32% improved employee morale through their response.
Overall, the report emphasizes the importance of having effective fraud prevention programs in place to prevent economic crimes. It also highlights the need for companies to invest in technology and risk management strategies to stay ahead of emerging threats.