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Economic Crime continues to be pervasive threat for Indian Companies, with 35 % of the organisations reporting having experienced fraud in the past two years according to PwC Global Economic Crime Survey 2007.
This is a dramatic drop in the percentage of companies that reported to be victims of fraud in 2005 survey where 54% of respondents reported suffering from economic crime. However in most categories of fraud, the respondents’ perception of fraud was substantially higher than the actual incidents reported. This mismatch may imply that incidents of fraud are going unreported.
The survey, entitled "Economic Crime: People, Culture and Controls," found that economic crime is all but universal, affecting companies of all sizes and in all industries.
According to the India findings:
- Corruption and Bribery continues to be the most common type of fraud reported by 20 % of the respondents;
- The average direct financial loss to companies was INR 60 Million (US $ 1.5 million) during the two year period. In addition the average cost to manage economic crime in India was INR 40 Million (US $ 1 Million) which is close to double that of the global and Asia Pacific average;
- In 36% of cases companies took no action against the perpetrators of fraud;
- In 50% of the cases frauds were detected by chance.
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 Click to download India report
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The biennial survey covering 152 organisations in India and over 5,400 globally is the most comprehensive study of its kind, conducted in association with Germany’s Martin-Luther University, Halle-Wittenberg.
For more information on the PwC Global economic crime survey 2007 and to download the global and India reports, visit www.pwc.com/crimesurvey
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