Nearly 3 in 5 Indian organisations hit by financial or economic fraud: PwC survey

Nearly 3 in 5 Indian organisations have fallen prey to financial or economic fraud in the past two years—well above the global figure of 2 in 5, revealed a survey conducted this year.

India’s figures have surged by 7 percentage points this year compared to the 2022 survey, highlighting a rise in fraud incidents.

PwC’s Global Economic Crime Survey 2024 surveyed 2,446 organisational heads worldwide, including 91 from India. Over 50% of respondents held senior roles such as board members, CEOs, and MDs, representing consumer products, retail, manufacturing, automotive, technology, and healthcare sectors.

For India, procurement fraud topped the list, with half of the leaders identifying it as a major issue compared to just a third globally. Procurement fraud—manipulating the procurement process for financial gain—is one of the oldest and most pervasive forms of economic crime, affecting businesses of all sizes. 

Customer fraud, bribery and corruption, cybercrime, and supply chain fraud rounded out the top five for India, with cybercrime emerging as the leading concern for 44% of global leaders.

The risk landscape for Indian companies has evolved, with customer fraud—spanning mortgage, claims, credit card, and cheque fraud—topping the list in 2022, impacting 47% of firms, while procurement fraud ranked fifth at 26%.

Indian companies are turning to data analytics to combat procurement fraud, waste, and abuse more effectively. 

“Being one of the most disruptive economic crimes, procurement fraud cuts across industries and processes. Therefore, maintaining the integrity of the procurement process is of paramount importance as the reputation of a company rests on it,” Puneet Garkhel, Partner and Leader, Forensic Services, PwC India, noted.