Increased cybercrime drives overall rise in fraud

Increased cybercrime drives overall rise in fraud

Fueled by a rise in cybercrime, fraud in the United States increased 10 percent recently, according to a recent PricewaterhouseCoopers report.

Forty-five percent of U.S. respondents to a recent survey said their company had experienced fraud in the past 12 months, up from 35 percent in 2009, the report said. Meanwhile, 10 percent of organizations said fraud cost them more than $5 million.

Cybercrime has been a key component of increased fraud, as 61 percent of companies believe the risk of cybercrime has risen during the past year, the report said. Despite a perceived rise in threats, 33 percent of respondents said their senior executives only reviewed security policies and risks after an incident occurred.

"Clearly, many executives have yet to seize upon the serious nature of the cybercrime threat," said Didier Lavion of PwC's forensic services practice. "Cybercrime has emerged as a formidable threat, thanks to deeply determined, highly skilled, and well-organized cybercriminals, from nation states to hacktivists, from criminal gangs to lone-wolf perpetrators. Organizations need to be aware and adjust to this changing landscape."