‘Fraud cases in India surged 21% in 2017’

January 25, 2018 12:00 am | Updated 05:00 am IST - MUMBAI

Country saw highest global incidence of fraud in 3 categories: Kroll report

Danger ahead:More companies are becoming aware of the risks related to fraud and are taking preventive steps.

Danger ahead:More companies are becoming aware of the risks related to fraud and are taking preventive steps.

India witnessed a significant increase in fraud cases involving corporates with 89% of executives reporting that their companies fell victim to at least one instance of fraud in the past 12 months, up from 68% in 2016, according to Kroll Annual Global Fraud & Risk Report 2017-18.

‘Significant rise’

“In India, the percentage of respondents affected by fraud increased significantly by 21% in 2017 to 89% while the global average this year is 84%,” said Reshmi Khurana, managing director and head, South Asia, Kroll.

As per this report, India witnessed the highest incidence of fraud globally across three categories — theft of physical asset or stock (40%), IP theft, piracy or counterfeiting (36%) and corruption and bribery (31%). The findings revealed that most common perpetrators of fraud incidents in India in the past 12 months were joint venture partners with 45% respondents naming them as the primary perpetrators.

Last year, existing and former employees were the main perpetrators of fraud within a company. This year, junior employees were the second most common perpetrators causing fraud incidents (43% respondents), as per the report.

As much as 33% of respondents in India suggested that the extent of loss suffered by their company due to fraud was more than 7% of the revenues. This was significantly higher than the 23% of respondents witnessed globally. Mexico was the only country where a larger proportion of respondents suffered loss of more than 7% of revenues due to fraud (39% respondents).

Cybersecurity remained an area of concern with 84% of Indian respondents saying they had experienced a cyberattack in the past 12 months, indicating an 11% point rise from 2016 (73%).

“The silver lining for India is that while higher proportion of companies witnessed fraud during 2017, increasing number of companies are also becoming aware of risks related to fraud and are taking preventive measures to tackle the issue,” said Tarun Bhatia, MD, Kroll South Asia.

“In coming years, however, combating information security risks would gain priority as fraud risk due to information theft is only likely to increase as India chases its digitisation dream,” he added.

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.