Thread: Fraud seen at 51% of Thai firms!!

Fraud seen at 51% of firms
$1.7m average cost per company globally
Fifty-one percent of Thai companies surveyed reported experiences with fraud in the past two years, according to PricewaterhouseCoopers. The global consultancy said that worldwide, 45% of companies reported financial losses as a result of economic crime over the past two years, up from 37% in 2003.

The average cost per business for ``tangible frauds'' was $1.7 million, including asset misappropriation, false pretences and counterfeiting, according to PWC's 2005 Global Economic Crime Survey.

The survey involved 3,634 companies from 34 countries. Total losses at 1,227 companies exceeded $2 billion over the past two years. On average, companies reported eight fraud incidents over the past two years, with larger companies reporting an average of 12 incidents.

Charles Ostick, a PWC advisory partner in Thailand, said reporting of financial crimes in Thailand is increasing.

``More companies here are reporting financial crimes. They're reporting a higher number of incidents, and in most cases, are detecting these crimes through accidental means,'' he said.

In Thailand, nearly 80% of those responsible for fraud are male, with 41% aged between 30 and 40 and more than 80% having a college education or higher degree. Some 45% were employed by the defrauded company, with almost 17% in senior management.

Besides financial damages, 40% of Thai companies reported suffering significant ``collateral damage'' to day-do-day operations, with 40% reporting damage to their brand, 47% to their relations with other businesses and 60% to staff morale.

``Companies here need to tighten their controls to avoid not only direct financial losses, but also damage to intangible assets _ their brand, to staff morale and to relations with customers, suppliers and other business partners,'' Mr Ostick said.

``This is particularly true in Thailand where damage to workforce morale was revealed as the single most important intangible loss resulting from fraud.''

While the number of fraud incidents globally has increased, the PWC survey showed only 20% of the companies surveyed viewed it likely they would be hit by fraud over the next five years.

The most common means of detecting fraud was by accident or chance at 34%, followed by internal audit at 26%. In Thailand, internal audit detected fraud in only 19% of incidents reported.

source: Bangkok Post (07/12/2005)

Only 51%?!

I guess the other 49% were craftier.

and this surprises you for wot reason ?

l for one am not surprised at this figure. ln fact l would have thought / predicted that it was much higher. Before the economic collapse in 1997, Thailand was rated 14 th most corrupt country in the owrld, which is significant for all the wrong reasons, when you think about it. This figure is not so much higher than the world average and l take it as a sign that corruption in Thailand is actually decreasing, even if it is only ever so slowly.