Monday, 10 December 2018

Economic crime in Croatia twice as high than last year and above world average

By  Sep 19, 2018

According to the PwC Global Economic Crime and Fraud Survey, every other company in Croatia was a victim of economic crime last year, with the losses from 50,000 to 1 million dollars. Compared to the previous year, the rate of economic crime in Croatia (53 percent) is now twice as high – Poslovni.hr reports.

It also surpassed the world average (49 percent) and significantly surpasses the average for economic crime in Eastern European countries (47 percent). In the survey, it is reported that their experience was shared by 62 leading Croatian organizations, and it covered 7200 business participants from 123 countries.

The survey shows that economic crime in Croatia has changed. Many of the most evolved forms of this crime, such as "bribery and corruption", are now down. In 2016, one third of businesses complained about corruption, and last year only 12 percent complained about it. Theft has also increased (58 percent of business have been hit by thefts in 2016 and 30 percent in 2017), as well as frauds.

When it comes to tax frauds and misuse of information in securities trading, according to this survey, in Croatia there weren’t any in 2016, as well as the last year. It seems that economic criminals are looking for new areas where they can act.

Human resources scams, where they have been hired during recruitment and with salaries, have been completely erased due to the outflow of the workforce. However, the manipulation space in the business world is now in new areas of economic crime. Increasingly, criminal acts such as unlawful mergers and abuses of superior market positions, showing a violation of the Competition Protection Act (from zero jumped to 6 percent).

There is also an increase in deceptive business behavior, including abuses of incentives. This form of criminality jumped from zero to 33 percent! This problem is particularly serious because a quarter of businesses claim to have the biggest consequences.

At the top, as the most widespread form of economic crime and with the biggest consequences for business, are consumer scams. These are those in which clients or other entities through mortgage frauds, credit card misuses, insurance frauds, fraudulent identities and other ways are cheating business.

Even 36 percent of the organizations had the greatest damage of this type of fraud. The most common victims of fraud are technology companies, insurers, financiers and merchants.

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The Voice of Dubrovnik

THE VOICE OF DUBROVNIK


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