Four out of five companies have suffered from corporate fraud in the past three years, according to a survey by Kroll, one of the world?s leading risk consultants. As many as 49% of India respondents to the survey said that corporate fraud is more prevalent than three years ago.
In both India and China, 60% see themselves as vulnerable to bribes and corruption. New technologies, new investors and expansion into new overseas markets have opened the door to different forms of fraud, the report said.
In some sectors, more than a fifth of companies have lost more than $1 million. Seven per cent of the Indian respondents said fraud had cost them between $100,000 and $1 million while 39% said it cost them below $100,000.
?As our society has become more reliant on information technology, increased globalisation and greater interconnectedness, certain exposures have expanded right along with them,? according to Jules Kroll, founder of the company.
?Dramatically new exposures such as ID theft, various IT crimes, and false reporting by asset managers were rarely seen 25 years ago,? he said.
?The risks of fraud for businesses are greater today than in the past,? said Anne H Tiedemann, regional managing director of Kroll Greater China and Southeast Asia.
Kroll commissioned the Economist Intelligence Unit to conduct a survey of 900 senior executives worldwide. The Economist Intelligence Unit is the business information arm of The Economist Group, publisher of The Economist.
