Allianz Trade
Since 2022, Allianz Trade has conducted an annual fraud survey among businesses in the Netherlands and Belgium. The survey focuses on various types of fraud, the damages companies incur, and the measures taken. Overall, it provides a picture of the resilience and vulnerability of the business sector in the Netherlands and Belgium. Conducting the survey annually allows for the registration of current fraud developments.
A total of 350 companies from the Netherlands and Belgium completed the questionnaire. Forty percent are B2B companies, 40% are B2C, and 20% are government and non-profit organizations. All companies/organizations have an annual turnover of at least €10 million and employ at least 50 people.
Conclusion
False Sense of Security
The general picture that emerges from the 2024 survey is that companies and organizations are increasingly taking measures to prevent fraud. As a result, the number of observed fraud attempts decreased by 10% from 2023 to 2024. This has led to a growing sense of security among companies and organizations.
In 2023, 85% of companies and organizations considered their fraud protection (more than) adequate. This rose to 91% in 2024. Dutch organizations are even more satisfied with their protection than Belgian ones: 95% vs. 85%. This is a false sense of security because over two-thirds of companies and organizations still encountered internal or external fraud attempts during the research period. This figure does not include common phishing emails. Of these fraud attempts, 91% resulted in actual damage. The belief that a few technical measures can adequately solve the fraud problem is incorrect.
Types of fraud
The most common type of internal fraud is the misappropriation of goods, while invoice fraud is the most common type of external fraud. In most cases, fraud has a minor impact on organizations, but in one-third of cases, the impact is significant. Financially, 55% of fraud losses exceed €50,000, and 16% exceed €200,000.
Reporting
Companies and organizations are increasingly involving external parties in cases of fraud (80% in 2024). Forty-one percent of this group has reported fraud to the police at least once. This means that on average, 59% of fraud cases are not reported to the police—55% in the Netherlands and 63% in Belgium.
Fraud Perpetrators
Internal fraud is mainly committed by men (75%), often men who have been employed for less than five years and are between the ages of 26 and 45. Looking at the financial impact, members of the management and executive levels cause the highest losses in internal fraud cases.
Fraud as an Increasing Risk
Fraud is increasingly seen as a growing risk, attributed mainly to digitalization and AI, which make fraud easier. However, for their own organizations, fraud is less often seen as an increasing risk, as many believe they have already taken the right measures. Fraud risk analyses were conducted more frequently in 2024, although costs sometimes hinder these efforts. Remote work is seen as increasing the risk of fraud due to reduced supervision and control over employees. Consequently, more measures were taken in 2024 to mitigate the risks associated with remote work.
Investing in Fraud Prevention
A quarter of organizations plan to invest more in fraud and scam prevention over the next three years. They are primarily considering IT security audits, increasing internal awareness, or audits to strengthen internal administrative procedures. Most organizations have a contingency plan available in case they encounter fraud. The management and legal department are often leading in these plans.
Insurance
Less than half of the organizations claim to have fraud, cyber, or directors’ liability insurance. There are many misconceptions about insurance solutions for fraud problems. Forty-five percent of organizations believe they have all fraud-related damages covered by insurance. However, upon closer inspection, this often proves to be a false assumption.
AI
Artificial Intelligence is generally seen as a positive development that reduces the risk of fraud. It speeds up procedures and takes work off people’s hands. Some believe that AI can actually cause misuse.
Source: allianz-trade.com/fraude-trendrapport-benelux-2024-nl
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