Thailand’s Economic Crime Landscape: Insights from PwC’s 2016 Survey

Thailand continues to face the persistent issue of economic crime, according to the latest PwC Economic Crime Survey ¹. Here are some key findings from the report:

Prevalence of Economic Crime in Thailand

• Four in ten Thai companies reported economic crime in 2014 and 2015 ²
• The highest percentage of fraud incidents originated from within the organizations

Most Frequently Encountered Types of Fraud

1. Asset misappropriation
2. Cybercrime
3. Bribery and corruption

Undetected Fraud

• Inadequate detection mechanisms, particularly in the area of whistleblowing
• More than half of economic crime incidents go undetected ³

Cybercrime

• The second most common economic crime in Thailand ⁴
• Both internal and external threats must be addressed

Incident Response Plans

• Only 26% of Thai companies had fully operational incident response plans ⁵
• Many respondents did not believe Thai law enforcement agencies had the necessary resources and skills ⁶

Fraudster Profile

• The fraudster profile has shifted from middle management to staff members
• Nearly one-third of victims were defrauded by business partners or agents acting on their behalf ⁷

Motivators for Economic Crime

• Opportunity and the ability to commit fraud are the primary motivators
• Disgruntled employees pose a significant risk ⁸

Mitigating Economic Crime Risks

1. Adopt a fraud risk assessment framework
2. Implement whistleblowing programmes
3. Encourage a culture of speaking up ⁹

Conclusion

Economic crime remains a significant threat to companies in Thailand. By recognizing the nature and causes of economic crime, organizations can take steps to strengthen their defenses and make it harder for fraudsters to exploit their businesses and financial institutions.