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 Economic crime: people, culture and controls
Oct 2007
The incidences of economic crime reported in Hong Kong have increased by 4% since the last survey in 2005, according to the PwC's 2007 Global Economic Crime Survey: Hong Kong. The average direct financial losses to Hong Kong respondents was US$618,000. The survey reveals perceptions of corruption remain a serious concern for Hong Kong companies operating in China.
26% of the Hong Kong companies surveyed had experienced economic crime during the past two years, a 4% increase from the survey's 2005 result. Factors explaining the rise in economic crime may include:
- Increased vigilance and awareness.
- More opportunities for fraud as a result of Hong Kong's economic boom.
- Expansion of Hong Kong companies into China and other regional markets.
Despite the increases in reported economic crime, Hong Kong companies continue to be too complacent. Only 4% of the companies surveyed believe it is likely or very likely that their company will be the target of fraud during the next 2 years.
Of the Hong Kong respondents that had responsibility for business activities in China, 29% reported they were victims of economic crime in the past two years in China, while 11% consider it likely or very likely they will be subjected to economic crime over the next two years in China. 24% of global respondents had experienced losing an opportunity to a competitor whom they believe may have paid a bribe.
The 2007 survey provides valuable insight into the perceptions, awareness and impact of economic crime in Hong Kong. It also shares Hong Kong companies' experience of doing businesses in China.
Get Your Copy Here
Read more by downloading our 2007 Global Economic Crime Survey: Hong Kong Report (pdf file, 429KB) and 2007 Global Economic Crime Survey (pdf file, 1.5MB) for your reference. You can also download the other territory reports from our global site. | 