For the First Time, Companies Losing More to Electronic Theft than Physical Theft
A surprising survey of senior executives worldwide showed that companies are losing more through electronic data theft than through a physical stealing of assets for the first time, Reuters reports.
The survey showed that the amount lost by businesses due to fraud rose from $1.4 billion worldwide to $1.7 billion this past year. However, this increase could be due in part to better detection and awareness of fraud. Fraud is most often perpetrated by the companies’ employees, whether it is electronic theft or physical theft. The most likely employees to be involved in fraud are senior management and junior employees.
Among emerging markets, China has the highest level of fraud, with 98 percent of businesses affected by fraud. Colombia has 94 percent of businesses affected and 90 percent of Brazil’s businesses are affected by fraud. The threat of electronic fraud is preventing many companies from expanding into emerging markets, especially in China, Africa and Latin America.
Although electronic fraud now causes more losses than physical thefts, physical thefts of assets, cash and inventory are still the most widespread form of fraud. Electronic theft accounts for 27.3 percent of total fraud losses, while physical thefts account for 27.2 percent of fraud losses. Despite the increases in electronic fraud, only 48 percent of companies are planning on spending more on information security, possibly because of the current bad economy.
As this report illustrates, although electronic fraud is becoming much more common, it is still a serious crime. If you have been charged with a New Jersey fraud crime, contact the skilled New Jersey fraud defense attorneys at Lependorf & Silverstein today at 609-240-0040.
