Conference addresses growing white-collar crime
While some consumers and entrepreneurs argue payoffs and fraudulent deals are just business as usual in Poland and much of the region, no reliable statistics exist to prove it. Experts warn that the worst is yet to come - improvements in technology and computerization becoming commonplace create increasing opportunities for scammers and hackers.
"Fraud is not yet perceived as a major problem in Poland. But I must stress, it will become a problem," said Will Inglis, partner with Deloitte & Touche in Toronto, Canada.
Inglis addressed a conference last week on international white-collar crime, sponsored by Deloitte & Touche. The conference was intended to increase awareness among regulatory officials and industry executives. It also provided a forum for the firm to tout its investigative and forensic accounting services should the worst befall a company located in Poland.
Inglis' conclusion stems from statistics gleaned from U.S. markets. Employee fraud accounted for $400 billion in losses last year, 6% of total revenues of American businesses, said Gary Moulton, D&T partner in Toronto. As a result, retail prices were 15% higher for some of these losses, he said.
The situation in Poland is even less clear statistically. In 1995, broadly categorized "economic crimes" accounted for zl. 570 million ($219 million) in losses from the government and private sector businesses said Jerzy Stanczyk, central police commandant. Included in the category are employee fraud, false bankruptcy claims and unpaid credit. That represented a 19.5% increase in the number of business related crimes over 1994. Only 4% of the claimed losses had been recovered.
"We're not fully able to determine the extent of this crime because those who have suffered are afraid to admit they've fallen prey to it," said Leslaw Paga, chairman of Deloitte & Touche Group, Poland. He added that companies need to buffer themselves against employee fraud and outside scams by increasing their awareness of the issues. Only 18% of economic crimes are found by auditors in the company books, Paga said.
Conference speakers highlighted common features of firms involved in white collar crimes. Suspect firms are often dominated by a single, charismatic individual surrounded by a bevy of "yes" men who follow every order. Chris Morris, partner in D&T's London office said that most firms involved in illegalities have a highly diversified range of activities that stretch over many jurisdictions.
Non-privatized firms have a higher potential to suffer from fraud but also to cover up their own illegal dealings, said Inglis.
"I fear that despite all the good advice, the twin human weaknesses of greed and deceit will take over," Morris said.
"Fraud is not yet perceived as a major problem in Poland. But I must stress, it will become a problem," said Will Inglis, partner with Deloitte & Touche in Toronto, Canada.
Inglis addressed a conference last week on international white-collar crime, sponsored by Deloitte & Touche. The conference was intended to increase awareness among regulatory officials and industry executives. It also provided a forum for the firm to tout its investigative and forensic accounting services should the worst befall a company located in Poland.
Inglis' conclusion stems from statistics gleaned from U.S. markets. Employee fraud accounted for $400 billion in losses last year, 6% of total revenues of American businesses, said Gary Moulton, D&T partner in Toronto. As a result, retail prices were 15% higher for some of these losses, he said.
The situation in Poland is even less clear statistically. In 1995, broadly categorized "economic crimes" accounted for zl. 570 million ($219 million) in losses from the government and private sector businesses said Jerzy Stanczyk, central police commandant. Included in the category are employee fraud, false bankruptcy claims and unpaid credit. That represented a 19.5% increase in the number of business related crimes over 1994. Only 4% of the claimed losses had been recovered.
"We're not fully able to determine the extent of this crime because those who have suffered are afraid to admit they've fallen prey to it," said Leslaw Paga, chairman of Deloitte & Touche Group, Poland. He added that companies need to buffer themselves against employee fraud and outside scams by increasing their awareness of the issues. Only 18% of economic crimes are found by auditors in the company books, Paga said.
Conference speakers highlighted common features of firms involved in white collar crimes. Suspect firms are often dominated by a single, charismatic individual surrounded by a bevy of "yes" men who follow every order. Chris Morris, partner in D&T's London office said that most firms involved in illegalities have a highly diversified range of activities that stretch over many jurisdictions.
Non-privatized firms have a higher potential to suffer from fraud but also to cover up their own illegal dealings, said Inglis.
"I fear that despite all the good advice, the twin human weaknesses of greed and deceit will take over," Morris said.
