Financial Crime World

Philippines Loses Millions Due to Fraud and Corruption

The Philippines is facing a significant challenge in combating fraud and corruption, with millions of dollars lost each year due to these incidents. According to a recent survey by PwC, approximately $50 million is lost annually due to fraud and corruption.

The Extent of the Problem

  • 38% of fraud cases over the past 24 months were committed by employees acting badly at night.
  • Approximately $50 million is lost each year due to fraud and corruption.
  • Long-term losses such as damage to reputation, loss of public trust, and low employee morale are not included in this amount.

The Role of Internal Perpetrators

Internal perpetrators, mostly from middle management and operational staff (38%), were found to be more successful in committing fraud due to their access to sensitive information, direct control over systems, and pressure from senior management.

  • 21% of cases involved collusion between internal and external actors.
  • 29% were committed by external perpetrators such as hackers and organized crime groups.

Remediation Efforts Fall Short

While organizations are taking steps to detect and respond to fraud incidents, remediation efforts fall short. Only:

  • 14% of respondents reported introducing new technologies to combat fraud.
  • 47% said their organization was not doing enough to upskill employees in technology essential for fighting economic crime.

Conclusion

The Philippines faces a significant challenge in combating fraud and corruption, with internal perpetrators being a major concern. To address this issue, organizations must:

  • Strengthen security against both external and internal threats.
  • Invest in smarter approaches to detection, response, and remediation, including the use of technology-enabled fraud-fighting tools.

As the country moves forward into a new decade, it is essential that business leaders take proactive steps to prevent fraud and corruption from occurring in the first place. By doing so, they can protect their reputation, maintain public trust, and ensure long-term success.