Economic Crime in Thailand: Key Findings from PwC Report
Fraudsters’ Profile and Motivation
In the latest report from PwC Thailand, several key findings on economic crime in Thailand have been highlighted. One of the primary observations is that employees continue to be the dominant actors in fraud cases.
- 77%: Employees are responsible for fraud, a decrease from 89% in 2014.
- Motivator: The biggest motivator for fraud in Thailand is opportunity and ability to commit fraud (64%), followed by employee morale (15%).
Detection Methods
Thai organisations rely heavily on internal audits and suspicious transaction reporting to detect fraud.
- 45%: Internal audits are used as a detection method.
- 17%: Suspicious transaction reporting is also widely used.
- 13%: Only 13% of organisations use tip-offs and whistleblowing hotlines for detection.
Investigation Budget
The majority of respondents spend relatively low amounts on investigating economic crime.
- 5%: Only 5% of respondents spent over $100,000 (approximately 3.5 million baht) investigating economic crime.
- 68%: 68% of respondents spent less than $50,000 (1.75 million baht).
Fraud Risk Assessment
About half of Thai companies perform a proactive fraud risk assessment at least once a year.
- 26%: However, 26% do not carry out an assessment in the past two years.
- Proactive approach: Half of Thai companies perform a proactive fraud risk assessment annually.
Response to Fraud Detection
When potential fraud is detected, Thai companies tend to use internal resources for investigation.
- 66%: Internal resources are used to investigate potential fraud.
- External expert advice: Only a small percentage seek external expert advice.
Recommendations for Improvement
The report suggests that Thai organisations need to improve their fraud risk management practices by:
- Conducting proper due diligence on business partners and agents
- Implementing robust whistleblowing policies and promoting hotline awareness
- Providing training for hotline operators and conducting interview training
- Increasing investment in fraud investigation and prevention measures
- Improving corporate culture and control mechanisms to prevent fraudulent activities.