More than two-thirds of UK risk professionals expect financial crime risk to increase in 2023

More than two-thirds of UK risk professionals expect financial crime risk to increase in 2023

Kroll, a leading independent provider of global risk and financial advisory solutions, has revealed that more than two-thirds (68%) of UK risk experts expect financial crime risks to increase over the next 12 months. The findings come as part of Kroll’s newly released 2023 Fraud and Financial Crime Report, which surveyed 400 risk professionals across four continents. UK respondents were broadly in agreement with their global counterparts and the figure for all respondents was 69%.  

Some (22%) UK respondents expect this increase in crime risk to be ‘significant’, below the global average of 26%. Meanwhile, just 30% of UK respondents rate their financial crime compliance programme as ‘very effective’, this is in-line with the global average (30%), level with the figure for Germany (30%) and ahead of the figures for the US (26%) and France (26%). Well over half (62%) of surveyed global companies are expecting an uptick in levels of government regulatory enforcement actions in the next 12 months. 

A third of UK respondents (32%) warned that ‘cybersecurity and data breaches’ is the primary driver behind the anticipated increase in financial crime risks followed by ‘financial pressures on companies or individuals’ (16%) and the ‘impact of remote working’ (16%). 

Globally, the report also found that firms are facing new challenges such as the risks posed by cryptocurrency, with almost a quarter (24%) globally listing it as a ‘significant’ concern. Just 31% of global respondents said that their compliance programmes currently cater for risks associated with cryptocurrencies. 

To counter a potential uptick in financial crime, the report found that more than two-thirds (68%) of UK respondents are planning to invest further in technology, while 62% will increase cybersecurity budget.  

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