Companies Falling Behind in Fight Against Fraud as Risk Profiles Fail to Keep Pace with Evolving Schemes

A new survey suggests that many Thai companies are not updating their risk profiles to combat the constantly evolving fraud schemes, leaving them vulnerable to attacks.

The State of Fraud Prevention in Thailand

The Thailand Economic Crime and Fraud Survey 2020, conducted by PwC, reveals some alarming statistics:

Nearly half of respondents do not have a formal fraud prevention programme in place.
Only around 8% have dedicated resources and compliance experts to manage their overall fraud programme.

The Evolving Nature of Fraud

The survey also found that many companies are struggling to keep up with the changing nature of fraud, which is increasingly becoming more sophisticated and complex:

Only 29% of Thai respondents have implemented or upgraded technology over the last 24 months to help them fight fraud and other economic crimes.

“We’re seeing a gap between the evolving nature of fraud schemes and the lack of investment in technology by many companies,” said Shin Honma, Partner at PwC Thailand’s Forensic Services. “This is putting businesses at risk of falling behind in the fight against fraud.”

The Importance of a Comprehensive Anti-Fraud Programme

The survey highlights the importance of having a comprehensive anti-fraud programme in place:

Regular risk assessments
Crisis management plans
Dedicated resources and compliance experts

However, fewer than 10% of respondents have committed dedicated resources and compliance experts to their overall fraud programme.

Outsourcing Non-Core Competencies

The survey also found that many companies are not taking adequate measures to prevent fraud when outsourcing non-core competencies:

Only 30% of respondents said they have a third-party due diligence or monitoring programme in place to protect against external fraud.

Consequences of Failing to Respond Effectively

The consequences of failing to respond effectively to fraud incidents can be severe:

Only 59% of respondents have documented investigation and discipline processes in place.
Many companies struggle to track the outcomes of investigations and make necessary changes to prevent future incidents.

The Payoff for Effective Action

However, for those companies that do take remedial action, the payoff can be significant:

More than half of respondents who took action reported being better equipped to handle future fraud incidents.
Improved operating effectiveness, workplace morale, and defences against future attacks.

Conclusion

The survey’s findings serve as a wake-up call for Thai businesses to reassess their approach to fraud risk management and invest in technology and other measures to stay ahead of the evolving threat.