(Commonwealth_India) New Delhi– Recently a A significant number of Indian organizations have reported incidents of financial misconduct. According to PwC’s Global Economic Crime Survey 2024, over the past two years, a significant number of Indian organizations have reported incidents of financial misconduct, with procurement fraud emerging as the leading concern.
The survey, which gathered insights from 2,446 business leaders worldwide, including 91 from India, showcases the most disruptive economic crimes faced by organizations and their strategies for mitigating fraud and ensuring compliance. Among the respondents, more than half were senior executives, including board members, CEOs, managing directors, and presidents.
PwC reports that 59 percent of Indian organizations surveyed experienced financial or economic fraud in the last 24 months. This figure is notably higher than the global average of 41 percent, representing an 18 percent increase. Moreover, the incidence of fraud in India has risen by 7 percent compared to the 2022 survey results.
The survey also underscores the increase in prominence of procurement fraud in India. A total of 50 percent of Indian respondents identified procurement fraud as a major threat, marking a significant 21 percent increase over the global figure. In contrast, in 2022, customer fraud was the top concern for 47 percent of Indian businesses. Globally, 44 percent of business leaders cited cybercrime as their primary concern, highlighting a broader shift in the types of economic crimes organizations are facing.
Puneet Garkhel, partner and leader of forensics services at PwC India, talked about how important procurement fraud is becoming. He said, “Historically one of the oldest economic crimes, procurement fraud involves illegally manipulating procurement processes for financial gain.” This year, half of our respondents in India have highlighted it as a major concern.”
The survey findings further indicate that procurement fraud is pervasive across various industries and business functions, making it one of the most disruptive economic crimes. In response, Indian companies are increasingly adopting data analytics to address procurement fraud, with 52 percent of organizations conducting transaction analysis before deals and 46 percent doing so afterward. However, only 37 percent employ real-time payment monitoring systems capable of blocking suspicious transactions.
Apart from procurement fraud, revealed that corruption and bribery account for 33 percent of all economic crimes globally. Approximately 26 percent of Indian respondents also identified corruption and bribery as significant challenges in the past 24 months. These findings highlight the urgent need for enhanced fraud detection and prevention mechanisms across industries in India, particularly in the procurement sector.
