The exact size of the fraud problem is impossible to estimate but on a global scale would be trillions of dollars every year.
In 2012, the Annual Fraud Indicator estimated the fraud losses from the UK alone each year totalled £73 billion, from the Private Sector (£45.5bn), Public Sector (£20.3bn), Individuals (£6.1bn) and Not-for-profit (£1.1bn). In a 2003, report by the Australian Institute of Criminology (AIC) and PwC entitled “Serious Fraud in Australia and New Zealand” annual fraud losses were estimated at AUD$5.8bn, which is increasing year on year.
Each year, the Big 4 consulting firms publish their own Global Fraud Survey findings which not only provide estimates into fraud losses but also highlights concerns and fraud trends across 30+ countries by conducting in-depth interviews with key stakeholders.
Understanding the main types of fraud and the actions your organisation can take to protect themselves from the rising costs of fraud, such as developing an effective Fraud Risk Management Framework is essential to counter fraud risks.