A research conducted by Deloitte India indicates that, though 88% of survey respondents felt a stringent regulatory environment could help reduce instances of fraud in the future, 56% believed incidents of fraud would continue to rise over the next two years. Only 38% respondents indicate that they organise periodic training programmes for senior management on fraud risk management. Only one-third respondents took legal action against any fraudster.
Findings reveal most respondents identifying two provisions in the company law - the mandatory establishment of a vigil mechanism for listed companies, and greater accountability on board and directors to prevent and detect fraud - as key measures to fight fraud. Diversion or theft of funds or goods, bribery and corruption, and regulatory non-compliance are seen as the top three types of fraud experienced by corporate India over the past two years.
As a means to detect fraud, respondents indicate relying on internal audit reviews (62%), whistleblower hotlines (53%) and IT controls (51%). The report unveils that actions taken by corporates upon detection of fraud continue to remain conservative - internal investigations (87% respondents), disciplinary action taken against the fraudster (78%) and update of existing controls (77%).
Most survey respondents did not contemplate the danger from emerging fraud risks, such as social media fraud (69%), ecommerce fraud (60%), cloud computing fraud (96%), and virtual-currency fraud (50%). Company executives cited leakage and data loss of confidential company information, fraudulent transactions through usage of stolen or hacked credit/debit card information and liabilities therein, and re-direction of payments to fraudulent accounts for purchase of goods, as among the key risks of doing business online.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now
We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the The Paypers website, they in no way represent the opinion of The Paypers.