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Financial Crime Prevention Methods Lagging Behind in Thailand, Survey Reveals

The COVID-19 pandemic has brought about a significant shift in the business landscape, and fraudsters are taking advantage of this new terrain. According to PwC’s Global Economic Crime and Fraud Survey 2022 - Thailand Report, nearly one-quarter (22%) of Thai companies experienced fraud, corruption, or other economic/financial crime within the last 24 months.

Fraud and Corruption on the Rise

The survey highlights that only 37% of Thai respondents have a designated risk management/compliance function for responding to fraud risks, compared to 43% globally. Furthermore, less than 30% of Thai respondents have increased the size of their enterprise risk management/compliance functions in the past 24 months, falling behind global standards.

New Methods and Technologies Used by Fraudsters

As a result of the pandemic, Thai companies experienced a significant increase in:

  • Cybercrime (24%)
  • Procurement fraud (24%)
  • Asset misappropriation (13%)

The survey also found that only 8% of Thai respondents are proactively monitoring supply chain risks, making this an attractive target for fraudsters.

Expert Recommendations

“The survey shows that Thai businesses’ perimeters are vulnerable to fraudsters who are adopting new methods and technologies to breach defences undetected,” said Phansak Sethsathira, Risk Consulting Partner at PwC Thailand. “It’s critical that businesses focus on investments to better protect themselves from economic crime.”

To enhance fraud risk management, experts recommend:

  • Understanding the end-to-end lifecycle of customer-facing products
  • Striking a balance between user experience and fraud controls
  • Orchestrating data to track end-to-end lifecycle of users and generate meaningful alerts

Prioritizing ESG Reporting Fraud

The report also highlights the need for companies in Thailand to prioritize:

  • ESG reporting fraud
  • Supply chain fraud
  • Anti-embargo fraud
  • Cybercrime

Strengthening Defenses Against Financial Crime

The survey findings emphasize the importance of investing in risk management and compliance to protect against emerging threats. Companies in Thailand must take proactive steps to strengthen their defenses against financial crime and ensure business continuity.

By taking these measures, Thai businesses can better protect themselves from economic crime and maintain a strong reputation in the global market.