CIFCFIN urges action as global annual loss to fraud hits $4.7trn

Chartered Institute of Forensics and Certified Fraud Investigators of Nigeria (CIFCFIN), has called on government institutions, private sector organisations, professionals, the media and the public to join hands in confronting the threat of fraud.

According to the Institute’s founder/chairman, Governing Council, Dr. Iliyasu Gashinbaki, fraud has evolved into one of the most pressing global risks of the 21st century, costing economies, institutions and individuals trillions of dollars annually. “According to the Association of Certified Fraud Examiners (ACFE), organisations worldwide lose an estimated five percent of their annual revenues to fraud, amounting to a staggering $4.7 trillion in global losses every year.”

The figure, he said, is almost equal to the nominal GDP of Germany ($4.74 trillion), and exceeds the current GDPs of India ($4.19 trillion) and Japan ($4.17 trillion).

“It also represents about 6.5 times the GDP of the United States ($30.50 trillion) and approximately four times the GDP of China ($19.23 trillion). On the African continent, where the total nominal GDP is estimated at $2.8 trillion, global fraud losses are almost twice the size of Africa’s entire economy. These comparisons underscore the sheer magnitude of the global fraud crisis and the urgency with which nations must confront it,” he charged.

He was speaking in Abuja last week, against the backdrop of this year’s International Fraud Awareness Week which kicked off on Sunday, November 16 and concluded on Saturday, November 22, with the theme, “Empowering Integrity: Unifying Against Fraud in Every Sector.” Elaborating on this, Gashinbaki said every year, the global observance unites governments, professional bodies, corporations and civil society across more than 90 countries with a common purpose – to deepen public consciousness on fraud risks and strengthen collective action in safeguarding financial integrity.

On what should be done to combat the menace, Gashinbaki declared that the government must continue to strengthen the legal and regulatory environment, while organisations must prioritise ethical culture, transparency and strong internal compliance controls, adding, “Professionals must uphold the highest standards of integrity. The media must continue to serve as a partner in driving public enlightenment, citizens must remain vigilant, informed and committed to reporting suspicious activities. Fraud flourishes in silence, but awareness serves as our strongest line of defence.”

Providing a background to the International Fraud Awareness Week, CIFCFIN’s Registrar/Chief Executive, Dr. Isa Salifu, said it began in the year 2000 “and since then it has remained a period during which the global anti-fraud community dedicates itself to creating greater awareness, strengthening resolve and engaging in advocacy on how to make the world a better place through the fight against fraud, particularly financial fraud.”