Financial Crime World

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Economic Crime in Thailand: Key Findings from a PwC Survey

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A recent survey conducted by PwC Thailand sheds light on the trends and statistics surrounding economic crime in Thailand. The report highlights areas of improvement for organizations to better manage fraud risk, investigate incidents, and promote whistleblower engagement.

Fraud Detection Methods

The survey reveals that Thai companies rely heavily on informal methods to detect fraud. Key findings include:

  • Suspicious Transaction Reporting: 17% of respondents reported that fraud was detected through suspicious transaction reporting.
  • Accidental Discovery: 15% stated that incidents were discovered by accident, while only 13% credited internal and external tips for detecting fraud. This is lower than the regional average (23%) and global average (17%).

Response to Fraud

When potential fraud is detected, Thai companies tend to rely on their internal resources to investigate:

  • Internal Investigation: 66% of respondents said that their company used internal resources to investigate potential fraud.
  • Specialist Forensic Investigators: Only 12% engaged a specialist forensic investigator.
  • External Legal Advisors and Auditors: 21% contacted external legal advisors, while 17% consulted auditors.

Investigation Budget

The survey found that Thai companies tend to allocate limited budgets for investigating economic crime:

  • Investigation Costs: Nearly 70% of respondents said that their company spent less than $50,000 (approximately 1.75 million baht) to investigate economic crime over the past two years.

Fraud Risk Assessment

The report highlights the importance of proactive fraud risk assessment:

  • Annual Assessments: About one-quarter of Thai companies perform a proactive fraud risk assessment at least once a year.
  • Global Comparison: Only 15% of respondents mentioned that their organization has performed an assessment more than once per year, compared to the global average (20%).

Whistleblowing Programmes

The report suggests that companies review existing whistleblowing policies and promote hotline awareness to encourage employees to report suspicious activities:

  • Policy Review: Companies should review their existing whistleblowing policies to ensure they are effective.
  • Hotline Awareness: Promote hotline awareness among employees to encourage reporting of suspicious activities.

Overall, the report highlights areas where Thai organizations need to improve in terms of fraud risk management, investigation processes, and whistleblower engagement. By addressing these gaps, companies can better protect themselves against economic crime and promote a culture of transparency and accountability.