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.”
To learn more about the scale and risks of trade-based financial crime, download the full Eastnets’ report Broken Inside, Broken Outside: The Global Fight Against Trade-Based Financial Crime.
About Eastnets
Eastnets is a global provider of compliance and payment solutions for the financial services sector. Through our experience, expertise and technology we enable safe and secure participation in the global financial economy for over 800 financial institutions globally, including 15 of the top 50 banks, and 22 of the world’s central banks.
For more than 40 years, we’ve worked to keep the world safe and secure from financial crime. We do this by helping our partners manage risk through Sanction Screening, Transaction Monitoring, analysis, and reporting, plus industry leading consultancy and customer support.
