52% of India facing fraud and economic crime in the last 24 months
In the past 24 months, 52% of Indian businesses have been victims of fraud or another type of economic crime. Surprisingly, 95% of them reported experiencing new fraud categories, such as misbehavior risk (67%), legal risk (16%), cybercrime (31%), insider trading (19%), and platform risk (38%).
Covid-19 outbreak and Work from Home
The companies were forced to embrace a work-from-home mentality as a result of the unanticipated Covid-19 outbreak in 2020, among other significant business interruptions. As a result, during the past two years, fraudsters and cybercriminals have become much more prevalent throughout the world. In the past 24 months, 52% of Indian businesses have been victims of fraud or another type of economic crime.
Surprisingly, the disruption brought on by COVID-19 has resulted in new sorts of fraud for 95% of them.
Insider trading (19%), cybercrime (31%), legal risk (16%), misbehavior risk (67%), and platform risk (38%), among other new fraud kinds, would affect Indian organizations in 2022.
Some startling information regarding the growth in corporate fraud following the Covid epidemic is revealed in a recent PwC research titled “Global Economic Crime and Fraud Survey 2022: India Insights.”
The rise of Customer Fraud in India
Customer fraud, which includes fraud involving mortgages, credit cards, claims, checks, etc., was the fraud that Indian businesses reported to the government the most frequently (47%). With 45% of Indian organizations reporting this kind of fraud, cybercrime came in second.
In addition, a significant 34% of Indian businesses reported fraud in the previous 24 months as a result of a failure to properly know their customers. Over the past few years, KYC fraud has increased considerably along with the widespread use of smartphones and the Internet.
Customers are easily tricked by fraudsters who request personal information from them, such as account login data, card details, and OTP, in order to access their bank accounts without authorization. RBI has consistently advised clients not to disclose their identities.
Businesses are finding it difficult to prevent fraud, with over 67% of the organizations polled stating that an external attack or coordination between external and internal parties was the cause of the incident that caused the most disruption. Customers (41%), organized crime (31%), and hackers (49%), respectively, were the most frequent external offenders.
Read More: An Intercontinental ballistic missile from North Korea lands near Japan
