Nearly two in three UK companies (64%) have experienced fraud or economic crime in the last two years, according to PwC’s Global Economic Crime Survey 2022.

The recently published results show the UK is above the global average for 2022 (46%), as well as being 56% higher than the last time the survey was conducted in 2020.

Cybercrime was the most frequently reported, with around 32% stating they experienced a cyberbreach, although this is less than the number of those who fell victim to cybercrime in the 2020 survey (42%).

Additionally, fraud connected to supply chains, included for the first time in the survey, accounted for almost a fifth of respondents (19%).

Firms in the UK and the EU have already been putting more resources towards cybersecurity, doubling spending to combat an increase in cyberattacks in 2020, according to a report by Hiscox.

Data from the Cyber Readiness Report shows that businesses are allocating more resources to combat the “growing cyber challenge” than ever as the scale of the problem “continues to both change and grow”.

Stats showed that firms were targeted more often in 2020 than in 2019, with 28% of the businesses that suffered attacks being targeted on more than five occasions in 2020.

PwC’s Head of Digital & Forensic Investigations Fran Marwood commented: “With increased levels of disruption being experienced, and the fact that more UK organisations have experienced fraud than in our last survey, it’s surprising to see a decline in some types of fraud and economic crime, such as cybercrime, bribery, and financial statement fraud.

“From what we are seeing in the market, I believe some of the trends are temporary, with, for example, instances of fraud and misconduct potentially remaining undiscovered as traditional controls and corporate culture evolve to keep pace with remote working.

“Encouragingly, in some cases, incidences of economic crimes have reduced due to the investment organisations have made in effective compliance programmes, cyber defences and fraud prevention controls.”

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More than half of Global Economic Crime Survey respondents (51%) said fraud was committed by external fraudsters, compared to 43% globally. The top three suggested external perpetrators in the UK were customers, hackers, and vendors/suppliers.

The most serious fraud was initially detected most frequently by companies monitoring suspicious activity using forensic technology (15% of cases) and by internal audit according to 15% of respondents. This was followed by corporate security (12%) and whistleblowing or tip-off (10%).

In terms of money lost through fraud, almost a quarter of respondents reported the figure to be between $1 million and $5 million.

Marwood added: “The message to organisations is clear. With fraud now a greater and more costly threat than we’ve seen before, and the risk landscape continuing to undergo rapid change, it is important that organisations invest in prevention, and take the time to make sure their defences are match-fit for any attacks.

“Organisations also need measures in place so they can act at pace when fraud happens to them. Failing to do so can end up with them suffering the penalty.”

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