Cybercrime is now the second most commonly reported economic crime affecting companies in the FS sector. Asset misappropriation remains the most popular way of defrauding an organisation, according to the latest findings from PwC’s global economic crime survey.

Cybercrime accounted for 38 per cent of economic crime incidents compared to 16 per cent for other industries in the survey which in total analysed 3,877 responses spanning 78 countries, with 23 per cent of those (878 respondents) coming from the FS sector. While FS organisations have historically taken significant steps to control and safeguard their customers’ data, the survey shows they are nevertheless concerned about the growing threat. Half of FS respondents perceive the risk of cybercrime to have increased in the last 12 months, compared with 36 per cent for other industries. Some of the developing technologies such as using apps to access banking services and mobile phones to make payments are likely to increase, rather than decrease these risks.

Some 45 per cent of FS respondents suffered frauds in the last 12 months, compared to the 30 per cent reported by other industries. Andrew Clark, forensic services partner, PwC, comments: “The rise in cybercrime is not so surprising given the sector holds large volumes of the type of data cybercriminals are interested in and there is an established underground economy servicing the needs of the market for stolen and compromised data. However, our survey shows cybercrime accounts for a much greater proportion of economic crime in the FS sector than in other industries. It puts the FS sector’s customers, brand and reputation at significant risk. Regulators are increasingly viewing it as a key area of focus and financial institutions are expected to have appropriate systems and controls in place to fight this growing threat. ”

Asked what aspects of cybercrime they were most worried about, FS respondents had greater concern around all of the categories of collateral damage listed when compared to other industries. More than half said their greatest concern was around reputational damage. In addition to the growth in cybercrime, asset misappropriation and accounting fraud were the other two types of economic crime that increased over the last year. The rise in accounting fraud from 19 per cent in 2009 to 26 per cent in 2011 differs from other industries where it fell from 38 per cent in 2009 to 22 per cent in 2011.

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