Economic Crime on the Rise in Singapore: PwC Survey Reveals Widespread Concerns

According to a new report by professional services firm PwC, Singapore’s reputation as a low-risk business environment is under threat due to an increasing number of economic crimes. Here are the key findings from the 2014 Global Economic Crime Survey:

Singapore’s Economic Crime Landscape

• One in four (24%) Singapore-based companies have experienced economic crime in the past two years, which is lower than the global average (37%).
• The most common types of economic crime in Singapore were:
  • Asset misappropriation (80%)
  • Bribery and corruption (15%)
  • Cybercrime (15%)

Asset Misappropriation: A Persistent Problem

Asset misappropriation, which includes embezzlement and theft, is a significant issue in Singapore and globally. The fraud triangle - pressure, opportunity, and rationalization often plays a role when employees steal from their organizations.

• Weaknesses in the compliance culture create opportunities for fraudsters and enable them to justify their actions.

Procurement Fraud: Exposed to Higher Risks

As Singapore companies expand overseas, the procurement department is often exposed to higher fraud risks. Common types of procurement fraud include:

• Theft of inventory
• Manipulation of bids
• Kickbacks to procurement officers
• Payment of bribes to buyers

It is essential for procurement functions to be well-prepared to mitigate potential procurement risks as they expand their footprint in the region.

Singaporerespondents Concerned about Cybercrime

• Singapore respondents are concerned about the negative effects of cybercrime on their organizations, with reputation damage being the biggest worry.
• Despite a lower number of cybercrime incidents reported in Singapore (15%), there have been high-profile cases like website defacements and stolen customer data, demonstrating the growing threat.

PDPA: Additional Protections against Cybercrime

Singapore’s strong legal and regulatory framework provides some protection against economic crime. Companies must maintain a robust cybersecurity posture and ensure that their policies and controls are effectively implemented. Singapore’s Personal Data Protection Act (PDPA), which governs the collection, use, disclosure, and care of personal data, offers additional protections against cybercrime. Effective compliance with the PDPA’s data protection rules can help organizations strengthen their cybersecurity policies and controls.

Mitigating Economic Crime Risks

To help companies mitigate economic crime risks, PwC has released the 2014 Global Economic Crime Survey, which highlights key findings and provides guidance on how organizations can manage these risks effectively. You can access the full report on PwC’s website at www.pwc.com.