Twenty four percent of Indian organisations experienced economic crime in the last 12 months as compared to 18% in 2009 (with most of them believing it to increase in the next one year) according to the respondents of the India supplement of PwC’s Global Economic Crime Survey 2011 released today. Incidentally the number of companies reporting economic crime in India in the last 12 months, is only 24% as compared to 34% globally. This shows that Indian companies seem to have a higher tolerance for economic crime such as bribery and corruption with the general perception of these being necessary for survival.
Commenting on the report, Vidya Rajarao, Leader Forensic Services, PwC India said:
“Identifying and responding to incidents of fraud continues to be a challenge for even the most sophisticated organisations. Economic crime remains intractable because of the very nature of fraud, the many kinds of fraud including some ‘new age’ frauds and the correspondingly broad range of fraudsters who commit them. However, as this survey also demonstrates, the risk of fraud can be mitigated by effective controls, a strong culture of prevention and deterrence and assertive action when cases arise.”
Though the direct cost of economic crime to an organisation can be difficult to gauge, nearly 32% of the respondents reported losses exceeding INR 50 lakh to the organisation.
Notes to the editor
About the survey
Methodology: The sixth Global Economic Crime Survey, 2011 India supplement questionnaire had three sections: a section with general profile questions, a section with comparative questions looking at what organisations had experienced and a section on this year’s special topic on cyber crime. 106 professionals from different industries in India participated in the online survey.
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