Swiss Economic Crime: A CHF7.7 Million Alarm
Switzerland, celebrated for its financial sector’s robustness, experiences an alarming surge in economic crime in the past year, with average heist values doubling from CHF3.3 million in 2018 to CHF7.7 million in 2019 1.
Key Findings
- Average cost per economic crime incident: CHF3.3 million in 2018 versus CHF7.7 million in 2019.
- Fraud cases over CHF10 million: Four instances in 2018; nine instances in 2019.
- Total economic crimes increased by: 30% increase in total economic crimes.
Escalating Financial Threats
KPMG’s latest report reveals a growing list of financial challenges Switzerland faces 2:
- Rise in fraud cases: An increase from four instances in 2018 to nine instances in 2019.
- Significant fraud cases: Nine instances that surpassed CHF10 million in 2019.
- Overall economic crimes: A 30% increase in all economic crimes reported.
Causes of Economic Crime
Experts postulate that several factors contribute to this escalating trend 2:
- Digitalization of Swiss businesses: Increased reliance on technology offers opportunities for cyber intrusions.
- Complexity of economic transactions: The growing complexity of corporate structures makes it more challenging to identify and respond to economic crimes.
Swiss Federal Police Concerns and Reactions
Swiss Federal Police have expressed concerns about the increasing trend and their response includes 1:
- Investment in cybersecurity measures: To counter future cyber threats and breaches.
- Stricter enforcement of financial regulations: Strengthening the regulatory framework to prevent economic crimes.
Staying Protected amid Shifting Economies
In the face of a shifting global economic climate, Switzerland and its residents must adapt to ensure 1:
- Strengthened defenses: Securing businesses and personal finances against economic crime.
- Awareness and preparedness: Staying informed about the evolving nature of financial crimes.