Staff Reporter
Karachi
Leading accountants have urged regulators to keep pace with technology in the fight against economic crime. Estimates show financial crime costs the world $3.5 trillion per year — more than the gross domestic product of the UK – and often sees countless people lose savings, jobs and sometimes much more.
A new report, Economic Crime in a Digital Age, features analysis from senior practitioners at ACCA (the Association of Chartered Certified Accountants) and EY.
It focuses on the challenges business faces in fending off breaches from sophisticated attackers.
The panel found there is still a pressing need to create a regulatory environment that supports financial innovation as well as limiting the risks for consumers and businesses. Policymakers and regulators must overcome the technology lag – where legislation has sufficiently caught up with technology. Jason Piper, head of Tax and Business Law at ACCA, believes technological advances and criminal activity can often go hand in hand. Piper says the scope of technology means there are more potential victims of economic crime in single attacks.
He says: ‘Economic growth flourishes on technological advances, however criminal activity also responds and reacts, and the opportunity that criminals exploit creates challenges for regulators, legitimate businesses and their customers, auditors and advisers alike.
‘This lag will be exacerbated by the skills and knowledge deficits within the regulatory and law enforcement community. In recent years, criminals have benefited from operating internationally in a way regulator cannot.’ Rogue actors are increasingly abusing emerging technologies and innovation to compromise data integrity.
