Almost Indian corporate companies does not seem to be doing enough to tackle fraud, according to a recent survey.
A well known research organization Deloitte India have some statistics.
- 88% 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.
- 38%onlyrespondents indicate that they organize periodic training programs 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%),
- whistle blower 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.
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