Fraud risks around Environmental, Social and Governance (ESG) reporting and supply chain disruption are likely to grow and have the potential to cause businesses serious harm, according to PwC’s Global Economic Crime and Fraud Survey 2022. Although incidences of this type of fraud are currently low, PwC believes that they will increase as fraudsters seek to take advantage of current geo-political and economic difficulties.
- Just 6% of organisations said they experienced anti-embargo fraud in the past 24 months. However, PwC expects this to increase in the next 24 months as global sanctions rise to the highest levels in recent history.
- While just 8% of the organisations that uncovered fraud in the past 24 months experienced ESG reporting fraud, PwC believes this will also rise as ESG becomes more important to stakeholders.
- One in eight organisations experienced new incidents of supply chain fraud during the disruption caused by Covid-19, and one in five said they see supply chain fraud as an area of increased risk as a result of the pandemic.
More details are available via the web links below.
Audit Committees and Boards / Governing Bodies are advised to note the outcome of the survey.