Global economy loses $4.7trn annually to fraud, says SON

The Standards Organisation of Nigeria (SON) says the global economy loses over 4.7 trillion dollars through fraud every year, amounting to nearly seven per cent of annual revenues of organisations worldwide.

Prof. Oserheimen Osunbor, Chairman of SON’s National Technical Committee on Governance of Organisations, said this on Tuesday in Abuja at the official launch of ISO 37003:2025.

Our correspondent reports that the ISO 37003:2025 is the world’s first international fraud control management system standard.

Osunbor said that in spite of existing internal mechanisms and statutory regulations, fraud remained pervasive, aided by technology and artificial intelligence.

According to him, the making of ISO 37003 began in 2018 during discussions at an ISO plenary in Sydney, Australia, which later led to the constitution of an ad hoc group and the conduct of a global survey.

He said that the findings confirmed the urgent need for a dedicated fraud control standard, as the economic and social costs of fraud continued to rise.

Osunbor said that the new standard provided guidance for organidations to develop, implement and maintain effective fraud control management systems, covering prevention, early detection and response.

He said that the standard, published in May and adopted as a national standard in Nigeria, represented the first time Nigeria would co-lead the development of an international standard alongside the UK.

Also speaking, Ms Sorrel Evans, representative of the British High Commission, described the launch of ISO 37003 as a milestone in the global fight against fraud.

According to Evans, fraud is not only a financial issue but a human one that destroys livelihoods, undermines trust and, in some cases, costs lives.

She said that the scale of the problem was alarming, citing an estimated 76 million global victims of fraud annually, and scammers siphoning off 4.7 trillion dollars in a single year.

“Nigeria alone recorded financial sector fraud losses of N52.26 billion in 2024, a 295 per cent increase from N17.67 billion in 2023,” she said.

Evans commended SON, the British Standards Institution (BSI), and other stakeholders for their leadership in developing the landmark standard.

She said that Nigeria’s role in ensuring the standard, signaled ambition and commitment to global best practices.

“Fraud thrives in silence and fragmentation, but by launching ISO 37003, Nigeria, the UK, and their partners are choosing transparency, unity and action,” she said.

Earlier, the Director-General of SON, Dr Ifeanyi Okeke, described the ISO 37003:2025 Fraud Control Management System, as a strategic tool to promote transparency and good governance in the country.

Okeke assured stakeholders that SON would drive effective implementation of the standard through awareness campaigns, training, and a credible certification scheme.