According to the survey, 36% of the respondents believed that employees posed the maximum threat to the organisation. However, the threat perception varied according to sectors too. For instance, while respondents from the financial sectors believed that customers posed the maximum threat, the construction sector perceived that suppliers or contractors would most likely commit fraud.
A majority (78%) of the respondents acknowledged the need to undertake a background check on employees and third parties who may have access to sensitive information. Lack of effective internal controls was the primary reason - as identified by 24% of respondents - for organisations susceptibility to fraud, followed by lack of ethical values (20%) and collusion between employees and vendors (19%).
The survey observes that there is a growing concern over fraud in India Inc since it is directly impacting profitability. Rupee losses have been the most in case of expense accounts (23%) followed by false or incorrect information (17%). While as many as 79% respondents believed that their organisation is proactive in dealing with fraud, over 56% of the organisations dont have a fraud response plan in place.