Fraud has affected nearly a third of global firms in the past year, with insurance companies among the key targets, according to a report by PricewaterhouseCoopers (PWC).

The Global Economic Crime Survey polled more than 3000 respondents in 54 countries, with 43% noting an increase in fraud during the period.

Economic crime affected 30% of respondents, while 42% reported an increased cost of fraud. Asset misappropriation or theft was the most common crime committed at 67%.

Other reported crimes included financial statement fraud, bribery and corruption, intellectual property infringement, money laundering, tax fraud, insider trading and espionage.

Some 53% of fraudsters worked inside the target organisation.

“Economic crime remains rampant among organisations of all sizes, in all countries and industries despite increased regulatory action and anti-fraud controls,” PWC said.

Local PWC partner Malcolm Shackell says financial turmoil has led to an increase in incentives to perpetrate fraud, “such as financial hardship, loss of bonuses and the threat of redundancy, and fraud controls have been relaxed as companies cut staff”.

The insurance industry (45%) was the second-highest affected industry behind communications (46%), with external fraud particularly common. Insurance has polled consistently high for a decade.

“The very nature of an insurance company’s work with retail insurance products makes them a target for higher levels of fraud, particularly external fraud,” Mr Shackell told insuranceNEWS.com.au.

He says insurance companies are aware of fraud and have more fraud detection controls than some other sectors but are not immune from recent spending cuts.

“Fraud is a constantly changing curve that businesses need to walk if they want to combat it,” he said.