Financial Crime World

Financial Crimes on the Rise in Emerging Markets: Kenya Experiences High Incidence of Fraud

===========================================================

A recent report by PwC Kenya has revealed alarming trends in financial crimes in emerging markets, with a significant number of organizations in the country experiencing fraud within their ranks.

High Incidence of Fraud in Kenya

According to the 2022 PwC Economic Crime and Fraud Survey Report - Eastern Africa, 63% of respondents in Kenya reported experiencing fraud within their organization over the past two years. This is higher than the global average of 46%. The report highlights the growing threat of external fraud, which is increasingly becoming a major concern for businesses in the region.

Types of Financial Crimes on the Rise

The report reveals that various types of financial crimes are on the rise, including:

  • Customer fraud
  • Asset misappropriation
  • Procurement fraud
  • Bribery and corruption
  • Supply chain fraud

These crimes require immediate attention to protect against economic crime. Muniu Thoithi, PwC’s Deals and Consulting Leader, Eastern Africa, notes that “today’s fraud landscape is more complex than ever, presenting continually evolving challenges for organizations to contend with.”

Emerging Areas of Risk

The report also highlights new and emerging areas of risk that require attention to protect against economic crime, including:

  • ESG reporting fraud
  • Government relief fraud
  • Cybersecurity risks

To mitigate the emergence of new types of economic crimes or evolution of existing typologies, continuous risk management is crucial. Maintaining robust oversight with the flexibility to shift focus as needed when new risks emerge is critical in protecting one’s perimeter.

Proactive Steps to Protect Against Financial Crimes

In light of these findings, it is essential for businesses in Kenya to take proactive steps to protect themselves against financial crimes. The report recommends:

  • Implementing effective fraud prevention methods
  • Strengthening supply chain controls
  • Enhancing cybersecurity measures to prevent and detect fraudulent activities

Download the Full Report

The full report can be downloaded by registering on the PwC Kenya website.

By taking proactive steps to protect themselves against financial crimes, businesses in Kenya can minimize their exposure to these types of fraud and ensure a safer and more secure operating environment.