Procurement Fraud, Bribery, and Corruption Pose a Serious Challenge for Global Automotive Companies, finds PwC 2014 Global Economic Crime Study

DETROIT, Aug. 28, 2014 /PRNewswire/ -- Economic crime in the automotive industry is on the rise with 28 percent of the automotive respondents reporting that their companies experienced an incident of economic crime, up slightly from 25 percent in 2011. Among the top types of economic crime in the automotive sector, 74 percent are committed by internal perpetrators, making it the industry with the highest rate of insider crime. Most internal perpetrators were either senior executives (23%) or middle managers (54%).

Top types of economic crime in the automotive sector include:

• Asset misappropriation (74%)
• Procurement fraud (34%)
• Bribery and corruption (34%)
• Human resources fraud (13%)
• Cybercrime (13%)

"Economic crime results in significant revenue lost as well as impacting employee morale," said Ted Hawkins, partner, PwC US Forensic Services. "As the automotive industry continues to do business on a global basis, it becomes even more important to implement a fraud risk management strategy to fight against these types of crimes.  When automotive companies invest in emerging markets, these types of crime-fighting tools can help to uncover so called kick-back schemes and unethical vendor selection."

Survey results indicate that only about half (48%) of the automotive sector's companies have conducted a fraud risk assessment at least annually over the past 24 months—and 27 percent  haven't completed one at all.    

For more information about PwC's Global Economic Crime study, visit www.pwc.com/auto or download PwC's 365 app.

About PwC's Automotive Practice

PwC's automotive management consulting practice is creating a competitive advantage for its clients by changing the way companies operate. PwC's management consultants work with senior automotive executives to help develop and implement innovative operational strategies that deliver breakthrough results. The practice is a leader in operational strategy, supply chain, product development, strategic sourcing, and manufacturing. PwC has automotive resources in every automotive market around the world. For more information, visit www.pwc.com.

About the PwC Network 

PwC firms help organizations and individuals create the value they're looking for. We're a network of firms in 157 countries with more than 184,000 people who are committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at www.pwc.com.

Learn more about PwC by following us online: @PwC_LLP, YouTube, LinkedIn, Facebook and Google +.

© 2014 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. 

This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

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SOURCE PwC

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