Nationwide economic and political uncertainty has resulted in a “perfect storm” scenario for individuals and companies both nationwide and throughout the world. Add to that financial and employment woe that can increase the possibility of fraud that could do additional harm to enterprises.
A recent report cited the number of economic crimes remaining at levels going back to 2018, affecting nearly half of businesses victimized by fraud and corruption in 2022. Still, the impact on large and small enterprises is significant. The growing sophistication of technology has created new ways to scam business organizations
Fifty-two percent of large companies were victimized by fraud in the last 24 months, many of those with global annual revenues of more than $10 million. One in five cited disruptive incidents valued at over $50 million. The number of smaller companies with less than $100 million in revenue lost $50 million.
Cybercrime ranked highest among scams, with one-third of businesses claiming illegal activities as their largest concern. Close behind is customer fraud at 27 percent and misappropriation at 23 percent. Forty-one percent of organizations generating $100 million to $1 billion, 41 percent, were victimized by cybercrimes.
Consumers targeted at record levels
Consumers are not immune to fraud, with significant increases in these crimes. According to the US Federal Trade Commission, individuals lost nearly $6 million to fraudulent actions in 2021, an increase of 70 percent from the previous year.
The most prominent categories involved so-called prizes, lotteries, and employment opportunities. $2.3 billion came from imposter scams, nearly boule in 2020. Online shopping grifters racked up almost $392 million, a jump from $246 million the same year.