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NZ ranks fourth in world fraud survey leadership

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Wed, 30 Nov 2011 7:27a.m.

Almost all sectors experienced a rise in fraud

Almost all sectors experienced a rise in fraud

New Zealand has jumped to fourth place worldwide for reported frauds, with cyber fraud emerging as the latest threat to businesses, according to a PriceWaterhouseCoopers global economic crime survey.

New Zealand now ranks fourth out of 78 countries, up from eighth out of 54 in 2009. The latest survey shows 49.5 percent of New Zealand respondents were the victim of one or more frauds in the past year.

Compared to the 2009 survey, almost all sectors experienced a rise in fraud, the survey showed. The biggest increases for reported fraud were for retail and consumer, at 80 per cent, energy and mining at 71 percent and government at 60 percent.

"Given the uncertain economic environment, the pressures and incentives to commit fraud have not declined since the 2009 survey, but instead appear to have increased," said Eric Lucas, PWC forensic services partner.

Cybercrime was included in the survey for the first time. It ranked third on 24 percent, behind accounting fraud at 30 percent and asset misappropriation on 74 percent.

The survey found kiwi businesses are not taking cybercrime seriously, with 39 percent of respondents not receiving any cyber security training in the past year.

"Criminals are becoming more sophisticated in their approach as they have identified how organisations have a reliance on technology and the fraudsters are acquiring the technical skills to take advantage of low risk and high rewards," Mr Lucas said.

Businesses needed to be educated about what to do when they suspect someone of committing fraud, he said

It was worrying that only 21 percent of New Zealand organisations gave the fraudster nothing more than a wrap over the knuckles, he said.

Of the 93 New Zealand organisations who participated in the online survey, 39 percent of detected frauds came from tip-offs.

NZN

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30 Nov 2011 11:20a.m.

Jay wrote:

The 3rd paragraph says it all. "Compared to the 2009 survey almost all sectors experienced a rise in fraud. The biggest increases were for retail & consumer at 80%, energy & mining at 71% and government at 60%.

30 Nov 2011 07:58a.m.

aiden wrote:

i'm always surprised by how many stupid people in NZ fall for scams that they have been warned about for years. it comes down to greed and I no longer feel sorry for these people. I also believe an intelligence test should be passed before a person is allowed to use a computer.