3 out of 5 Indian organizations have been victims of financial or financial fraud in the past two years – far higher than the global figure of 2 out of 5 this year, a survey has found.
India’s figures increased by 7 percentage points this year compared to the 2022 survey, highlighting the rise in fraud cases.
PwC’s Global Economic Crime Survey 2024 surveyed 2,446 organizational heads worldwide, including 91 from India. More than 50% of respondents held senior roles such as board members, CEOs, and MDs, representing the consumer products, retail, manufacturing, automotive, technology, and healthcare sectors.
For India, procurement fraud topped the list, with half of leaders identifying it as a major issue compared to one-third globally. Procurement fraud – the manipulation of the procurement process for financial gain – is the oldest and most widespread form of economic crime, affecting businesses of all sizes.
Customer fraud, bribery and corruption, cybercrime, and supply chain fraud rounded out the top five for India, with cybercrime emerging as a top concern for 44% of global leaders.
As the risk landscape for Indian companies evolves, customer fraud – spanning mortgage, claims, credit card, and check fraud – tops the list in 2022, affecting 47% of firms, while procurement fraud ranks fifth at 26%.
Indian companies are turning to data analytics to more effectively combat procurement fraud, waste and abuse.
“Being one of the most disruptive economic crimes, procurement fraud cuts across industries and processes. Therefore, maintaining the integrity of the procurement process is paramount as a company’s reputation depends on it,” notes Puneet Garkhel, Partner and Leader, Forensic Services, PwC India. did