In 2016, economic crime — such as fraud, intellectual property (IP) infringement, corruption, cybercrime, or accounting fraud — will continue to be a major concern for all organizations. Our predictions with regards to these crimes for this coming 2016 calendar year are as follows:
- Small and Mid-Sized Entities still place little to no emphasis in being proactive.
- Although financial institutions will lead the way with regards to the size and number of fraudulent activities, governmental agencies will increase at a faster rate ~▲7%.
- More tortuous procedures will be implemented within the healthcare industry due to the complexity of current healthcare processes, monies involved, and sheer the number of transactions.
- IP Infringements will increase▲ 10%.
- Creditors become more active as it pertains to bankruptcy fraud.
- Cybersecurity impedes the growth of the cloud by ~10%.
- Anti-Money Laundering hits small to mid-size financial institutions at an unprecedented rate.
- Accounting fraud gets international attention – AGAIN.
- Audit Committees increase recognition that a CPA’s audit identifies only 3% of the fraudulent activity - whereas 6% of fraud is found by accident. A fraud has twice the chance to being discovered by accident than it does by an independent CPA during the course of an audit.