Cos feel frauds are 'inevitable cost' of doing biz: KPMG
Around 293 companies, including public sector entities, participated in the survey conducted in June this year.
As many as 94 per cent of the respondents felt that frauds have become more sophisticated.
"Bribery and corruption (83 per cent) is perceived to be a major concern followed by e-commerce and other cyber related frauds (71 per cent) and diversion/theft of funds or goods (65 per cent)," the survey said.
Cyber crime, intellectual property fraud, piracy and counterfeiting, and identity theft have been identified as the key fraud risks of the future.
Even though many respondents were aware of such frauds, they had limited knowledge about the way in which "these frauds manifest themselves or how organisations could tackle them", it said.
As per the survey, "vendors/agents" are most susceptible to commit fraud, followed by "management employees (senior managers and above), non-management employees (managers and below), business associate and customer. Financial services and information and entertainment sectors have been identified as most vulnerable segments prone to fraud.
KPMG noted that greater awareness of fraud and its impact can result in companies becoming more sensitive to noticing frauds, which otherwise tend to go unnoticed or are deliberately overlooked.
"While the enforcement action in India is not swift and decisive enough in comparison to our global counterparts, we are still striving to make that change and small steps in that direction have already been taken," the report said.
When it comes to the mode of detecting frauds, the most effective way was found to be whistle-blower hotlines followed by internal audits, data
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