45% of Indian firms report cybercrime frauds, rank second after customer frauds: study
The shift to far off running due to the Covid-19 pandemic has unfolded agencies to a brand new set of dangers, with consumer fraud (e.g. fraud concerning mortgages, credit score cards, claims, and cheques) being on pinnacle of the list, said through 47% of corporations, in step with the PwC’s Global Economic Crime and Fraud Survey 2022: India Insights,
The pinnacle frauds in India additionally modified notably withinside the closing years as cybercrime got here a near second, with 45% of Indian corporations reporting this kind of fraud. Further, KYC failure became skilled through 34% of Indian corporations that skilled fraud, corruption, or financial/economic crime and got here in third.
Further, 52% of Indian corporations skilled fraud or financial crimes withinside the closing years, and 95% of those 52% corporations skilled new sorts of fraud because of the disruption because of Covid-19.
“With organisational perimeters turning into extra prone during the last years, it’s far vital for agencies to now no longer simply usually awareness on policies, training, and inner controls however additionally prioritise making an investment in state-of-the-art technology to manipulate and mitigate the evolving nature of frauds,” stated Puneet Garkhel, companion and leader, forensics services, PwC India.
Garkhel brought that it’s far an increasing number of turning into essential for corporations to apprehend the give up-to-give up existence cycle of consumer-going through merchandise and strike a stability among person enjoy and fraud controls.
“Over time, ambitious actors turn out to be higher at exploiting cracks,” he stated. Among the corporations that encountered fraud withinside the closing years, 12% skilled ESG reporting fraud, 9% skilled anti-embargo fraud, and 19% skilled deliver chain fraud. 67% of corporations that skilled fraud said that the maximum disruptive incident got here thru an outside assault or collusion among outside and inner sources.
The new sorts of fraud skilled through corporations encompass misconduct risk (67%), felony risk (16%), cybercrime (31%), insider trading (19%), and platform risk (38%). The survey additionally determined that large firms have been hit harder, with 60% of corporations with sales over $1 billion experiencing fraud in comparison with 37% of corporations with sales under $a hundred million.
Misconduct became the most important mission confronted through corporations as horrific actors commenced taking part and taking gain of pandemic-associated uncertainties and volatilities. Amongst corporations that said fraud, behavior risk (or dangers related to people withinside the firm, vendors, agents, and customers) became the most important hazard at 90%.
