59 Per Cent Indian Companies Face Financial Fraud, Higher Than Global Average: PwC Survey Reveals

A significant 59 per cent of Indian companies have reported experiencing financial or economic fraud in the past two years, according to PwC’s Global Economic Crime Survey 2024 - India Outlook.

This is notably 18 per cent point higher than the global average of 41 per cent. Additionally, this represents a 7 per cent rise in incidents within India since the 2022 survey, PwC India pointed out.

Puneet Garkhel, Partner and Leader of Forensic Services at PwC India, stated, "In our 2022 survey, customer fraud led the list, reported by 47 per cent of companies. However, this year's findings reveal a shift with procurement fraud now emerging as the primary concern."

To address procurement fraud, Indian companies are increasingly turning to data analytics. While 52 per cent are analszing transactions before deals and 46 per cent are reviewing them afterward, only 37 per cent monitor payments in real time, with the capability to block suspicious transactions.

Another major concern raised by the survey is the issue of forced labor, which is prevalent across various sectors, from manufacturing to hospitality.

In India, 16 per cent of companies are actively addressing this risk, while 24 per cent are evaluating it. However, 26 per cent of companies are unaware of the issue’s significance, and 19 per cent acknowledge it but lack plans to assess and address it.

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