Trade-based financial crime accounts for 31% of global fraud costs but just 0.1% of media coverage

Trade-based financial crime (TBFC) is responsible for an estimated $1.6 trillion in losses each year, nearly a third of the total cost of global fraud, which stands at $5.127 trillion annually. Yet, despite its massive economic impact, TBFC is alarmingly underreported in the media, making up just 0.1% of all fraud-related mentions in articles over the last year.

Meanwhile, other smaller-scale types of fraud like Authorised Push Payment (APP) scams, projected to cost $6.8 billion annually by 2027, receive more media attention. Over the past year, APP scams were mentioned 17,121 times in the media – nearly twice as often as TBFC, which saw just 8,586 mentions. Given TBFC’s staggering impact on the global economy, this imbalance highlights a critical gap in public and industry awareness.

The complexity of TBFC, spanning intricate trade finance mechanisms and multiple jurisdictions, likely contributes to its lack of visibility, but this limited coverage masks a significant and growing threat to the global economy. However, this is precisely why TBFC deserves more attention. It operates in the shadows, away from the watchful eyes of authorities and media, posing a significant but unseen risk to the global economy.

Diya Innab, Deputy CEO at Eastnets, commented, “Trade-based financial crime may be one of the most complex fraud types, but that doesn’t make it any less damaging. Let’s be clear, lack of debate about this insidious threat is not the fault of the media. The fact is, journalists often follow industry conversations, and right now, it’s up to us in the sector to dig deeper into this critical issue and bring it to light. The more we understand it, the better equipped financial institutions and regulators will be to fight it.”

Article Credit: https://www.riskcompliance.biz/news/trade-based-financial-crime-accounts-for-31-of-global-fraud-costs-but-just-0-1-of-media-coverage/