As per the report, India Corporate Fraud Perception Survey, 80% of corporate India believes fraud will rise in the next two years. The current business disruption can spur fraud over the next two years, according to 80.3 percent of respondents. About 70.34percent felt the quantum of fraud losses would rise; with close to one-third of respondents saying it could be between 1 percent and 5 percent of revenues, the report said.
“The COVID-19 pandemic has caused widespread disruption and exposed vulnerabilities in ways businesses are managed across the globe. Some of the significant changes expected to influence business models in the long term, include social distancing, large-scale remote working, reliance on shorter supply chains, enhanced use of technology, and customer introspection on the perceived value of goods and services. India is also seeing unprecedented rise in volumes and pace of Mergers and Acquisitions (M&As), alongside significant rise in private equity and venture capital investments,” the Deloitte report added.
As per the findings of the survey, the procurement (19.35 percent) and information technology (16.94 percent) remain processes most vulnerable to fraud risks. Third parties were indicated as being most likely to indulge in unethical practices amounting to fraud (36.36 percent).
“There is a need to relook at mechanisms to prevent and detect frauds by investing in technology that can predict future risk areas and raise red flag for suspicious transactions. The ability to change and adapt FRM practices to new work paradigms will determine how organizations can effectively tackle future fraud risks. I hope you will find our survey report relevant and useful in your endeavours to prevent corporate fraud, make informed decisions about investing in anti-fraud technologies, designing fraud risk frameworks and building an ethical enterprise,” said Nikhil Bedi, Partner and Leader, Forensic, Financial Advisory, Deloitte Touche Tohmatsu India.
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2 Comments on this Story
Sanujit Roy53 days ago
All need tob e vigilant on this as WFH will continue for long
Vk Singh54 days ago
No itâ s only by Modi government by giving extra credit for corporate sectors mainly Adani-Ambani.