The rate of corporate fraud in India is at an all-time high and will continue to grow over the next two years – outpacing official efforts to mitigate it – because mechanisms that are supposed to manage fraud risk are outdated or inadequate, a report finds.
Fraudulent areas set to rise include bribery and corruption, the diversion or theft of funds and goods, and regulatory non-compliance. Many of the 400 chief executives at the companies in India who took part in the survey, conducted by Deloitte India’s forensic wing, did not identify emerging fraud risks such as e-commerce, social media, virtual/crypto currency fraud or cloud computing as being threats. This is despite them acknowledging that leakage of company information, fraudulent use of credit cards and the diversion of payments to fraudulent accounts are key risks to online business, today.
While just over a quarter of those interviewed said they had not faced any fraud in the last two years, nearly half said fraud had cost them over US$150,000 – a gross underestimate, according to some reports.