Fraud Watch

Lack of control of fraud is a cause of concern and a serious one at that for most corporates in India. A KPMG survey in October 2007 found that over 60% of the corporates interviewed accepted that their companies either lacked or did not have an internal fraud risk control mechanism. The hit is estimated to be to the tune of Rs 100 million plus for at least 10 giants in the country. Besides this, a lack of knowledge about the anti-fraud laws in the country and inability to detect fraud seem to be the priority concerns for these companies. In India, the lack of a centralized database for background check information and inexperienced professional services firms in this area makes it difficult and expensive for most corporates to have a thorough background check done for new hires.

Companies also accept that suppliers and e-fraud pose a huge threat to the bottom line of the company. Professional experts are hard to find in India and most corporates in India who work on cost arbitrage do not consider such services as a viable option.