Express Computer
Home  »  News  »  77% of Indian companies witness surge in frauds, Cybersecurity incidents take lead: #GTBharat Report

77% of Indian companies witness surge in frauds, Cybersecurity incidents take lead: #GTBharat Report

0 53

Revealing that every one of two organisations surveyed has encountered fraud incidents following the pandemic, Grant Thornton Bharat’s latest ‘Financial & Cyber Fraud Survey’ sheds light on the rising challenges in the current business environment. Of these, a significant 77% of Indian organisations have noticed an uptick in fraudulent activities. The survey identifies cyber, diversion of assets, and regulatory as the predominant areas of fraud that significantly impact various businesses’ operational and financial integrity.

Nearly half of the respondents attributed this rise in fraudulent activities to the shift from onsite to remote work environments and the subsequent lack of stringent internal controls. Specifically, cyber incidents account for 64% of these frauds, underscoring businesses’ critical vulnerabilities as they navigate increasingly digital landscapes.

“Our survey highlights the growing awareness among organisations regarding fraud prevention, with 60% of companies now prioritising cybersecurity and anti-fraud technologies on their strategic agenda,” states Samir Paranjpe, Partner, Grant Thornton Bharat. “This proactive stance is crucial as it emphasises the urgent need for advanced technologies like AI and machine learning, which are currently underutilised, with only about 20% adoption across surveyed entities,” Paranjpe further mentions. 

Furthermore, the study underscores the significant financial impact of these fraudulent activities, revealing that one-fourth of the organisations surveyed have suffered losses of INR 1 crore and above, with three-fourths of such organisations faced financial damages exceeding INR 5 crore. As businesses grapple with these challenges, more than 3 out of 5 organisations across various sizes and industries support a collaborative approach with forensic professionals to investigate frauds. The most affected industries include Technology, Media, and Telecommunications (58%), financial services (51%), and manufacturing (46%), highlighting the critical need for tailored anti-fraud strategies to address their unique vulnerabilities.

Delving deeper into the specifics, the survey reveals that 84% of organisations experiencing fraud noted the role of an external perpetrator either standalone or colluding with individuals within the organisation. Frauds by external parties are particularly concerning in sectors like financial services, where complex regulations and cross-border operations heighten risks.

“Our survey underscores the undeniable influence of regulatory dynamics, with a significant 68% of the respondents pointing to regulatory changes and enforcement actions as the primary force driving the establishment of governance and cybersecurity protocols. This demands a robust and proactive approach, reinforced by strong internal controls and a culture of compliance for building resilience and mitigating fraud risks in today’s evolving business environment,” shares Rahul Lalit, Partner, Grant Thornton Bharat.

Post-COVID-19, 73% of organisations have enhanced their governance and compliance frameworks, 63% have implemented enhanced awareness training for employees, third-parties, and customers, and 62% are conducting continuous control assessments of high-risk areas at regular intervals. By embracing tailored solutions and advanced technologies, organisations can strengthen internal controls and foster a culture of awareness, ultimately promoting trust, resilience, and a competitive edge in today’s complex market.

Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.

LIVE Webinar

Digitize your HR practice with extensions to success factors

Join us for a virtual meeting on how organizations can use these extensions to not just provide a better experience to its’ employees, but also to significantly improve the efficiency of the HR processes
REGISTER NOW 

Stay updated with News, Trending Stories & Conferences with Express Computer
Follow us on Linkedin
India's Leading e-Governance Summit is here!!! Attend and Know more.
Register Now!
close-image
Attend Webinar & Enhance Your Organisation's Digital Experience.
Register Now
close-image
Enable A Truly Seamless & Secure Workplace.
Register Now
close-image
Attend Inida's Largest BFSI Technology Conclave!
Register Now
close-image
Know how to protect your company in digital era.
Register Now
close-image
Protect Your Critical Assets From Well-Organized Hackers
Register Now
close-image
Find Solutions to Maintain Productivity
Register Now
close-image
Live Webinar : Improve customer experience with Voice Bots
Register Now
close-image
Live Event: Technology Day- Kerala, E- Governance Champions Awards
Register Now
close-image
Virtual Conference : Learn to Automate complex Business Processes
Register Now
close-image