MUMBAI: While incidents of fraud declined in the country in 2016 concerns over security still act as deterrents for global companies to operate in India, said a survey conducted by Kroll.
According to the Kroll Annual Global Fraud and Risk Report, 68% of respondents with operations in India experienced at least one fraud incident in 2016, falling from 80% in 2015.
“Despite the drop, 19% of surveyed senior executives worldwide were dissuaded from operating in India due to existing concerns over fraud, second only to China,” the report said.
Compared with last year, a greater percentage of respondents in India reported fraud across the four categories surveyed - corruption and bribery (27%), management conflict of interest (27%), market collusion (27%) and internal fraud (25%), the report said.
The survey results revealed that the most common perpetrators of fraud and security incidents in India in 2016 were current and former employees.
“Executives in India named junior employees inside the company (61%) as the primary perpetrators of fraud incidents. The next most common group to be named was agents and intermediaries working for the company (49%). In both cases, these numbers are 22% above the global averages,” it said.
