Global Economic Crime Survey 2016

New Zealand insights

Adjusting the Lens on Economic Crime: Preparation brings opportunity back into focus

Economic crime

Economic crime is a diversified global issue.

  • 40% of New Zealand organisations experienced economic crime
  • Of those, 74% experienced asset misappropriation
  • Company detection methods are not keeping pace

What opportunities are available for countering economic crime proactively?

Economic crime

Economic crime is a diversified global issue.

  • 40% of New Zealand organisations experienced economic crime
  • Of those, 74% experienced asset misappropriation
  • Company detection methods are not keeping pace

What opportunities are available for countering economic crime proactively?

Cybercrime

Cybercrime climbs, but business preparation is not keeping pace.

  • Cybercrime is the second-highest economic crime reported in New Zealand (tied with procurement fraud at 29%)
  • 45% of New Zealand organisations have a cyber incident response plan
  • Only half of board members request information about their organisation’s state of cyber-readiness

How will your cyber-response plan stand up to reality?

Ethics and compliance

Disconnect between the one at the top and reality on the ground.

  • 27% of New Zealand organisations don't have a formal ethics and compliance programme
  • 44% of incidents of serious economic crimes in New Zealand were perpetrated by internal parties
  • Employee morale (44%) and reputational harm (23%) were cited as the top forms of damage in New Zealand

How is your business strategy aligned with and led by your organisational values?

Anti-money laundering

Anti-money laundering continues to confound.

  • New Zealand reporting entities still have many challenges to fully comply with new regulation
  • 1 in 5 banks globally have experienced enforcement actions by a regulator
  • More than a quarter of all financial services respondents have not conducted AML/CFT risk assessments across their global footprint
  • Data quality is cited by 33% of global financial services respondents as a significant technical challenge

How would your organisation fare in the face of regulatory scrutiny?

Economic Crime in New Zealand

Forty per cent of organisations in New Zealand have experienced economic crime in the past two years since the last Global Economic Crime Survey. This ranks New Zealand 19th out of 115 countries that took part in the survey and places the country slightly above the global average of 36 per cent and below neighbouring Australia (52%).

This year’s report explores behaviours, attitudes and prevalence in three keys areas: cybercrime, ethics and compliance programmes, and anti-money laundering. Asset misappropriation continues to be the most common economic crime reported in New Zealand. This year’s level of 74 per cent is consistent with the last two surveys and shows that despite an increase in cybercrime and procurement fraud in recent years, it remains a top threat for New Zealand organisations.

While organisations need to ensure that they are ready for the growing and increasingly complex threats from cybercrime – now in joint second place as the most reported economic crime – they cannot afford to take their eye off the traditional frauds and thefts.

Economic crime is constantly evolving and becoming a more complex issue for organisations and economies. Organisations that understand how to balance their defences and strategically maintain a plan for growth will be the difference between capitalising on opportunities or falling victim to others.

Infographics

We've taken the results of this year's survey and transformed the data into relevant snippets of information for you to share and review.

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Eric Lucas
Partner
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Stephen Drain
Partner
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Campbell McKenzie
Director
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