In the recent PwC report based on 2,446 respondents, including 91 Indian companies across different sectors, India was flagged as the global leader in financial fraud. As per the report, more than 59% of businesses were exposed to financial crimes compared to the global average of 41%. The report further mentioned that since 2022, the economic crimes against businesses has increased by 52%.
Procurement fraud remains the top concern among these frauds, with a growing focus on bribery, corruption and forced labour. According to the partner and leader of the forensic services at Pwc India, “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. Being one of the most disruptive economic crimes, procurement fraud cuts across industries and processes.”
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Besides procurement fraud, corruption and bribery are the leading factors of financial fraud in India. It comprised 33% of economic crimes in India, with 26% of respondents identifying it as one of the top three most disruptive issues. Interestingly, 82% of Indian business leaders expressed confidence in their anti-corruption programs, slightly exceeding the global average of 77%.
The report also stated that 62% of Indian businesses have conducted enterprise-wide fraud risk assessments, with another 15% planning to do so within the next 12 months. While 52% of leaders expressed confidence in their third-party risk management, only 26% reported being “very confident.”
