[KUALA LUMPUR, 8 Nov 2023] — BDO PLT, a leading global advisory firm, is pleased to announce the release of the ASEAN Corporate Fraud Landscape 2023 Report. This publication provides a detailed analysis of the current fraud landscape in the region.
BDO's latest report incorporates insights gathered through a survey conducted in the first half of 2023, capturing the evolving fraud risks as the ASEAN region adapts to the post-COVID-19 normalcy.
The report highlights the rapid evolution of the fraud risk landscape, with Cyber Security Fraud remaining a pervasive threat. A rise in asset misappropriation and procurement fraud indicates a shift in the relative incidence of these elements of fraud.
Key statistics:
- 20% of respondents reported their organization being a victim of fraud in the past 12 months.
- 52% believe their organization is prepared to prevent, detect, and deter fraud.
- Only 12% actively employ data analytics mechanisms for fraud detection.
- 57% of fraud cases identified involved losses under US$1 million, a notable increase from previous years.
- 60% of respondents with whistleblowing channels indicated that frauds were identified through reporting, compared to only 25% in organizations without such channels.
The study underscores that internal control mechanisms have not kept pace with business evolution, leading to opportunistic fraud exploiting process and controlled weaknesses. Although whistleblowing mechanisms have been proven to be invaluable, empowering employees to speak up and enabling quicker identification and resolution of fraud events, despite persistent awareness, only 53% of respondents have a formal whistleblower mechanism in place.
Findings from the report have shown that regular risk assessments, and comprehensive communication and training are crucial measures to ensure the readiness and relevance of fraud prevention measures in an organisation.
BDO's ASEAN Corporate Fraud Landscape 2023 Report not only illuminates the challenges organizations face in the realm of fraud but also emphasizes the opportunities for transformation and growth.
This report release coincides with the International Fraud Awareness Week that is slated for November 12 to 18, 2023, a week-long campaign established by the Association of Certified Fraud Examiners in 2000 to raise awareness on fraud and is aimed at encouraging business leaders and employees to proactively take steps to minimise the impact of fraud.
The report offers organizations valuable insights into the current threats, trends, and consequences of fraud, along with recommended protective actions. For a detailed examination of the report, please visit https://www.bdo.my/en-gb/insights/featured-insights/asean-corporate-fraud-landscape
BDO PLT or BDO in Malaysia is a member of BDO International Limited, a UK company limited by guarantee, and forms the international BDO network of independent member firms.
Established in 1964, BDO in Malaysia services clients from its offices in Kuala Lumpur, Penang and Johor Bahru. It also has regional offices in Brunei, Cambodia, Laos, Myanmar and Vietnam.
For media inquiries or additional information, please contact BDO PLT’s Marketing and Communications team at +603 2616 2888 or marcomms@bdo.my