EY raises alarm over cybercrime, widespread corruption

By PETER EGWUATU

Ernst & Young, EY has raised fresh alarm over the increase in cybercrime which continue to affect companies’ performance globally, even as bribery and corruption has spread across the countries in various sectors of the economy as 88 per cent of respondents in a survey conducted by EY have emphasized.

David Stulb, Global Leader of EY’s Fraud Investigation & Dispute Services (FIDS) Practice said “With high-profile cybercrime incidence making headlines on a regular basis, boards should encourage management to have a robust incident response strategy in place.

Pressure on companies for timely disclosure of breaches is rising in many jurisdictions as well, so these issues require attention from the legal and compliance units.

The U.S. Securities and Exchange Commission is increasingly focused on cyber risks as they relate to the integrity of financial statements too, so audit committee members have to be alert to today’s cyber threat environment.”

The EY survey further stated that over 2,700 chief executives of companies across 59 countries including Nigeria highlighted that nearly 40 per cent consider bribery and corruption to be widespread in their countries .

The survey noted that emerging risks are not being taken seriously enough, as nearly half of respondents consider cybercrime a low risk.

Regarding emerging threats, the EY’s 13th Global Fraud Survey stated that despite the apparent global consensus on the significant scale of the threat of cybercrime, almost half of the respondents (48 per cent ) considered it to represent a very or fairly low risk to their business.

These survey findings suggest that executives may not have a proper appreciation of cybercrime risks. 48 per cent respondents see hackers as the biggest concern and are underestimating the risk from organised crime syndicates as well as foreign states.

Linus Osita Okeke, West Africa Leader of EY’s Forensic/Fraud Investigation & Dispute Services, said “A comparison of the current results for Nigeria with the results of EY’s 12th Global Fraud Survey 2012 showed a significant increase in the proportion of respondents who perceive bribery and corruption to be widespread in Nigeria. 72 per cent of the respondents in 2012 perceived bribery and corruption to be widespread, whereas the proportion rose to 88 per cent of the respondents in 2014. The implication is that perceived bribery and corruption is getting worse.”

 

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