About 59% of entities surveyed faced financial frauds in past 24 months: PwC survey
A PwC survey highlighted procurement fraud as the top threat for Indian organizations, with 59% experiencing financial fraud in the last 24 months, surpassing the global average by 18%. Of the 91 Indian respondents, 50% identified procurement fraud as a major issue, a 21% increase from global views. Despite using data analytics, only 37% employ real-time monitoring for fraud prevention. Corruption and bribery also remain significant concerns, accounting for 33% of economic crimes in India
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New Delhi: Many Indian organisations faced financial or economic fraud in the past 24 months where procurement fraud emerged as the top threat, a PwC survey said. PwC's Global Economic Crime Survey 2024 analysed the responses of 2,446 heads of organisations across the world, of which 91 were from India, on the most disruptive economic crimes affecting their sector and ways of mitigating risks of fraud and non-compliance.
More than 50 per cent of the respondents held top positions and comprised board members, CEOs, managing directors and presidents, PwC said. It said, "59 per cent of the Indian organisations surveyed said that they had faced financial or economic fraud in the past 24 months. This is 18 per cent higher than the global average of 41 per cent and 7 per cent higher in India when compared to the results of the 2022 edition of the same survey."
It further said the 2024 edition of the survey indicates that procurement fraud is now a predominant issue for Indian businesses, with 50 per cent of respondents identifying it as a major problem, marking a significant 21 per cent increase compared to the global sentiment. In contrast, in 2022, customer fraud was reported as the top concern by 47 per cent of businesses. Globally, 44 per cent of leaders highlight cybercrime as their top concern, the survey said. "Historically, one of the oldest economic crimes, procurement fraud involves illegal manipulation of procurement processes for financial gain. This year, half of our respondents in India identified it as their major worry," Puneet Garkhel, Partner and Leader, Forensic Services at PwC India, said.
Being one of the most disruptive economic crimes, procurement fraud cuts across industries and processes, Garkhel added. While Indian companies are using data analytics to combat procurement fraud with 52 per cent analysing transactions pre-deal and 46 per cent post-deal, only 37 per cent employ real-time payment monitoring with the capacity to block suspicious transactions. The survey also revealed that about 33 per cent of all economic crimes are related to corruption and bribery, while 26 per cent of the respondents in India found it to be one of the top three disruptive economic crimes in the past 24 months, the PwC survey said.: Many Indian organisations faced financial or economic fraud in the past 24 months where procurement fraud emerged as the top threat, a PwC survey said. PwC's Global Economic Crime Survey 2024 analysed the responses of 2,446 heads of organisations across the world, of which 91 were from India, on the most disruptive economic crimes affecting their sector and ways of mitigating risks of fraud and non-compliance.
More than 50 per cent of the respondents held top positions and comprised board members, CEOs, managing directors and presidents, PwC said. It said, "59 per cent of the Indian organisations surveyed said that they had faced financial or economic fraud in the past 24 months. This is 18 per cent higher than the global average of 41 per cent and 7 per cent higher in India when compared to the results of the 2022 edition of the same survey."
It further said the 2024 edition of the survey indicates that procurement fraud is now a predominant issue for Indian businesses, with 50 per cent of respondents identifying it as a major problem, marking a significant 21 per cent increase compared to the global sentiment. In contrast, in 2022, customer fraud was reported as the top concern by 47 per cent of businesses. Globally, 44 per cent of leaders highlight cybercrime as their top concern, the survey said. "Historically, one of the oldest economic crimes, procurement fraud involves illegal manipulation of procurement processes for financial gain. This year, half of our respondents in India identified it as their major worry," Puneet Garkhel, Partner and Leader, Forensic Services at PwC India, said.
Being one of the most disruptive economic crimes, procurement fraud cuts across industries and processes, Garkhel added. While Indian companies are using data analytics to combat procurement fraud with 52 per cent analysing transactions pre-deal and 46 per cent post-deal, only 37 per cent employ real-time payment monitoring with the capacity to block suspicious transactions. The survey also revealed that about 33 per cent of all economic crimes are related to corruption and bribery, while 26 per cent of the respondents in India found it to be one of the top three disruptive economic crimes in the past 24 months, the PwC survey said.
