According to a Global Economic Crime & Fraud survey by PricewaterhouseCoopers (linked here)
- 41% of Malaysian companies reported Economic Crime in the last 2 years (up from 28% in 2016)
- 17% of fraud is committed by external actors.
- 69% of fraud is committed by employees in Malaysia
- 32% of that by senior management
- 35% reported suffering bribery & corruption
- 48% suffered cyber attacks
The financial losses associated with this fraud mean that:
In 2016 – 13% of companies lost more than USD 1 Million
In 2018 that increased to 22%, and more than a third of Malaysian companies reported loosing over RM400,000, that’s over RM100 million lost by those surveyed.
48% spent an equal or greater amount to investigate and rectify the issues.
85% of Malaysian Businesses have no plans or are not aware of any such plans to implement Artificial Intelligence (AI) or Advanced Analytics (AA)to monitor or combat fraud.
Only 115 of Malaysian Businesses are considering and 3% confirming the use of some form of AI or AA.
Many companies see the different elements for security, such as Door Access, CCTV, IT Security, and internal processes as being separate entities, but this is not the case. Data must be captured and combined to highlight issues within the company.
These figures show a serious requirement for Malaysian Businesses who want to remain competitive to seek the advice of companies with experience in both IT and Physical Security along with core processes that ensure checks and balances are in place.
ACMF Group (www.acmfgroup.com)
The ACMF group of companies provides a range of services to help companies ready themselves for IPO including a full Business Security solution incorporating IT and Physical security and AI monitoring to reduce internal and external fraud events. Contact them for a free consultation.