Growing adoption of cloud-based storage and ‘internet of things’ are some of the reasons for the steep rise in cybercrime in the UK.

An 11% rise in economic crime against UK companies saw cybercrime becoming the fastest growing economic attack. Growing adoption of cloud-based storage and ‘internet of things’ are some of the reasons for the steep rise in cybercrime in the UK.

According the survey conducted by PwC, external perpetrators committed about 60% of the economic crimes, compared to 56% in 2014. The survey also found that there is a rising trend of ‘silver fraudster’ among UK corporate, with strong shift towards more senior and experienced employees committing such fraud.

It could be a greater concern for UK corporates as fraud carried out by senior management could be difficult to detect and prevent, the report said.

According PwC’s Global Economic Crime Survey, there is a dip in number of organizations reporting the crimes committed by their own employees but what could concern them is the rising number of frauds perpetrated by senior management.

The number of frauds committed by senior management has more than doubled during the period from 7% to 18%. Number of economic crimes committed by employees over the age of 50 tripled from 6% to 18% while employees from middle management were responsible for 36% of the crimes, while in half of the cases the crimes were committed by employees aged older than 40 years.

The Economic Crime Survey found that 45% of internal fraudsters had worked for more than five years within the organization they defrauded and 21% had more than a decade of service. In contrast, the number of junior staff carrying out economic crime has fallen since 2014, from 45% to 28%.

PwC Global corporate intelligence leader Mark Anderson said: “Hackers are now more ambitious than ever. Their aim goes beyond targeting financial information to include a company’s ‘crown jewels’ – customer data and intellectual property information, the loss of which, can bring down an entire business.  “The threat of cybercrime is now a board level risk issue, but not enough UK companies treat it that way.” About 44% of UK corporations have faced cybercrime during the last two years, emerging as the leading economic crime. Other economic crimes including bribery, asset misappropriation and procurement fraud have declined compared to cybercrime.

Despite looming threat, about a third of the organizations don’t have any cybercrime response plan to deal with such crimes, while only 12% of respondents said that they law enforcement authorities have the necessary skills. The greatest concern among UK companies is the potential service disruption, if cyber-attack happened, with 31% saying that they could face a medium-to high impact.

PwC’s UK Forensics practice head of ethics and compliance Tracey Groves said: “Economic crime is a question of culture, not just compliance. Even the best compliance programs will fail if a company’s culture accepts wrong-doing as a norm. PwC Global Economic Crime Survey 2016 is based on opinion of 6,000 participants from 115 countries.

More Here [cbronline]

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