Study: Economic crime up 60 percent

THE NUMBER of economic crime cases in Slovakia has grown by 60 percent since 2011, with roughly one-third of Slovak companies having their own experience with such fraud over the past two years, according to the results of a survey carried out by PwC on 76 Slovak companies in autumn 2013. In previous survey carried out in 2011 only 21 percent of the surveyed businesses indicated that they had experienced economic crime within the past 24 months, the TASR newswire reported on March 6.

THE NUMBER of economic crime cases in Slovakia has grown by 60 percent since 2011, with roughly one-third of Slovak companies having their own experience with such fraud over the past two years, according to the results of a survey carried out by PwC on 76 Slovak companies in autumn 2013. In previous survey carried out in 2011 only 21 percent of the surveyed businesses indicated that they had experienced economic crime within the past 24 months, the TASR newswire reported on March 6.

The most frequent economic crime cases involved asset misappropriation (with 54 percent of the respondents labelling this as the biggest problem), corruption and bribery (31 percent), procurement fraud (31 percent), mortgage fraud (19 percent), cyber-crime (12 percent) and money-laundering (12 percent).

PwC Director of Forensic Services Michal Kohoutek said that economic crime is financially demanding for Slovak businesses. As the survey indicated, more than 58 percent of the responding enterprises suffered from economic crime, estimating the resulting direct financial losses at no less than €72,800 per firm. For another 8 percent of the companies the losses amounted to at least €3.6 million.

“There are also indirect losses such as damaged reputations, violation of business relations, loss of trust in company leaders and the influence on employees’ morals,” Kohoutek said, as quoted by TASR.

The survey showed that 27 percent of all economic crimes were revealed via the company’s system of fraud risk management, while 14 percent was detected only by accident, TASR wrote.

Source: TASR

Compiled by Radka Minarechová from press reports

The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

The processing of personal data is subject to our Privacy Policy and the Cookie Policy. Before submitting your e-mail address, please make sure to acquaint yourself with these documents.

Top stories

Gorilla sends Slovaks back to the streets

For a Decent Slovakia protests continued in five locations around Slovakia.

Košice protest on October 18

Nicholson: Only a naive person would believe anything has changed

A former Slovak Spectator and Sme journalist wrote a book about the Gorilla file.

Tom Nicholson

Protests will take place, Pellegrini says Fico can sleep well at night

Read the reactions to the published Gorilla recording.

Smer chair Robert Fico

Two nominees for Record of the Year released within a week

Arguably, only a handful of journalists are likely to hear all 39 hours of Gorilla, but the public will no doubt jump at some sequences.

Protests over the Gorilla scandal drew thousands into Slovakia’s squares.