Companies lose over 5% of their revenue annually to fraud

by THEFUTURE.TEAM

October 8, 2024

Companies lose more than 5 per cent of their revenue each year to fraud, according to data from an international study by the Association of Certified Fraud Examiners (ACFE), presented by Chrystalla Kazara, vice president and director of training for the organization’s Cyprus office.

KEY FACTS

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The study examined 1,921 real-life cases of job fraud from 138 countries.
Kazara pointed out that the losses of companies from fraud annually amount to more than 3.1 billion dollars.
She added that fraud cases are divided into three categories – embezzlement, corruption and misuse of financial statements. Embezzlement was the most common category, accounting for 89 % of cases in the Association of Certified Fraud Examiners survey, Kazara explained.
According to her, during the coronavirus pandemic, there was a serious increase in losses from fraud by 24 %, with the biggest jump being marked by cases of corruption – 33 %, and in second place was fraud with financial statements. According to her, this is due to the compromise of the companies’ internal control systems.

TANGENT

Kazara pointed out that specifically for Eastern Europe, the most serious problems are due to corruption, which refers to 71 % of the cases in the study by the Association of Certified Fraud Examiners.

The study also indicates that more than half of the frauds are due to company employees. Kazara emphasized that if employees were trained in how to act on fraud, it would prevent a large number of cases.

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Cyprus Embraces Social Enterprise Innovation With True Heart Café Inauguration

by THEFUTURE.TEAM

May 18, 2026

Strategic Subsidies Drive Social Enterprise Growth

Cyprus is expanding efforts to support social entrepreneurship through its “Plan to Encourage Registration of Beneficiary Enterprises in the Social Enterprises Registry,” which includes financial incentives aimed at helping social enterprises cover initial setup and operating costs.

Kypros Protopapas said registered social enterprises can now apply for a one-off grant of €10,000 as part of the government’s broader strategy to strengthen the social economy sector.

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From Policy To Practice: The True Heart Café Case

Speaking during the inauguration of True Heart Café, the first social enterprise in Cyprus focused on integration, Protopapas said the project demonstrates how the Social Enterprises Law is moving from legislative framework to practical implementation.

According to the commissioner, the legislation established the foundations for a social economy model that combines commercial activity with broader social objectives. True Heart Café was presented as an example of how business activity can operate alongside measurable social impact rather than focusing solely on financial returns.

A Model For Inclusive Entrepreneurship

Protopapas also described social entrepreneurship as a model that places greater emphasis on people, inclusion and sustainability within the business environment. Government agencies, including the Commissioner’s Office and relevant ministries, have worked on incentive structures intended to encourage the creation and expansion of social enterprises across Cyprus. The broader approach aligns with European efforts aimed at strengthening socially focused economic activity and inclusive business models.

Government Endorsement And High-Level Participation

The inauguration ceremony in Nicosia was attended by several senior government officials, including Klea Papadellina, who formally opened the café. Additional attendees included Nikos Christodoulides, Konstantinos Ioannou, Marinos Mousiotis and Charalambos Proutzos, reflecting broader government support for inclusive employment initiatives.

Empowering Individuals And Driving Change

Papadellina said the project represents a new model of social entrepreneurship focused on inclusion and participation. Eighteen individuals with autism are involved in the operation of the café, with several also participating as co-shareholders, creating opportunities for both economic participation and personal empowerment. She additionally encouraged businesses to adopt more inclusive employment practices, arguing that success should also be measured through social impact alongside economic performance.

Looking Ahead

As Cyprus continues expanding its social economy framework in line with broader European policies, projects such as True Heart Café are expected to play a larger role in promoting inclusive entrepreneurship and social integration. Authorities said efforts will continue toward strengthening policies that support the inclusion of people with disabilities across economic and social life.

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