 "Watch out India Inc! Corporate frauds likely to surge in 2015; theft, bribery to lead")
The year 2015 does not bode too well for corporates as far as frauds are concerned. In fact, there will be a rise in corporate fraud over the next two years, a Deloitte India Fraud Survey Report reveals, putting out an ominous warning.
The Deloitte India Fraud Survey Report was developed on the basis of responses from close to 400 CXOs across all major sectors working in the area of fraud risk management. The survey also focuses on prevention and detection of fraud, including profiling the fraudster, role of technology in fraud risk management, and managing new fraud risks.
“Corporate India has traditionally taken a reactive approach to mitigating fraud and complying with regulatory requirements. This is what our survey responses also highlight. However, with organizations being exposed to new frauds and a changing regulatory environment, a proactive approach is the need of the hour. Companies need to make investments towards putting in place systems and processes aimed at curbing fraud in the long term,” Rohit Mahajan, Senior Director, Deloitte Forensic (India).
Here are the key takeaways from the report:
Diversion/theft of funds or goods, bribery and corruption, and regulatory non-compliance take the top three slots. These were the top reasons in the past two years too, says Corporate India
Emerging fraud risks are through Social media (60 percent), e-commerce (60 percent), cloud computing fraud (96 percent), virtual crypto-currency fraud (50 percent)
As many as44 percent of survey respondents put their lossesat Rs 10 million, a conservative estimate to say the least
To detect frauds, some measures highlighted were internal audit reviews (62 percent), whistleblower hotlines (53 percent)andIT controls (51 percent)
Not enough is being done to detect frauds, believed respondents. Some of the detectors are internal investigations (87 percent), disciplinary action taken against fraudster (78 percent), renewal/updation of existing controls (77 percent)
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