The Chartered Institute of Forensics and Certified Fraud Investigators of Nigeria (CIFCFIN) has issued a urgent call for collective action against the escalating threat of fraud, revealing staggering global losses that dwarf the economies of major nations.
Global Fraud Epidemic Reaches Crisis Levels
Speaking in Abuja during the ongoing International Fraud Awareness Week, CIFCFIN's Founder and Chairman of the Governing Council, Dr. Iliyasu Gashinbaki, declared fraud as one of the most critical global risks facing the 21st century. The event, which commenced on November 16, carries the theme "Empowering Integrity: Unifying Against Fraud in Every Sector."
Dr. Gashinbaki revealed shocking statistics from the Association of Certified Fraud Examiners (ACFE), indicating that organizations worldwide lose approximately five percent of their annual revenues to fraudulent activities. This translates to a mind-boggling $4.7 trillion in global losses every year - a figure that highlights the massive scale of the problem.
Fraud Losses Compared to World's Largest Economies
The CIFCFIN president provided compelling context for these enormous losses by comparing them to the economic output of major nations. The $4.7 trillion fraud figure nearly equals Germany's entire nominal GDP of $4.74 trillion and surpasses the current economic outputs of both India ($4.19 trillion) and Japan ($4.17 trillion).
Even more startling, Gashinbaki noted that annual fraud losses represent about 6.5 times the United States' GDP ($30.50 trillion) and approximately four times China's economic output ($19.23 trillion). These comparisons underscore the devastating economic impact of fraudulent activities on global prosperity.
Multi-Sector Approach to Combat Fraud
To effectively tackle this growing menace, Dr. Gashinbaki outlined specific responsibilities for different sectors of society:
The government must intensify efforts to strengthen legal and regulatory frameworks that deter and punish fraudulent activities. Organizations across both public and private sectors need to prioritize ethical workplace culture, maintain transparency in operations, and implement robust internal compliance controls.
Professionals must uphold the highest standards of integrity in their respective fields, while the media should continue serving as crucial partners in public enlightenment campaigns. Citizens also play a vital role by remaining vigilant, staying informed about fraud schemes, and promptly reporting suspicious activities to authorities.
The call to action comes as Nigeria joins the global community in observing International Fraud Awareness Week, emphasizing the need for coordinated efforts to protect economies, institutions, and individuals from financial crimes that threaten sustainable development.
