77 pc of Indian firms witness surge in frauds due to Covid-19 pandemic: Report
About 50 per cent of Indian organisations encountered one or more fraud incidents during and after the pandemic, with a substantial majority (77 per cent) perceiving a noticeable increase in fraudulent activities due to the Covid-19 pandemic, a new report revealed on Tuesday.
According to the consulting firm Grant Thornton Bharat, nearly half 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 accounted for 64 per cent 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 per cent of companies now prioritising cybersecurity and anti-fraud technologies on their strategic agenda," said Samir Paranjpe, Partner, Grant Thornton Bharat.
The report surveyed over 250 CXO respondents from a wide spectrum of sectors, representing different roles and responsibilities, including business and strategy, finance, information technology, risk and compliance, and legal.
Moreover, the report revealed that one-fourth of the organisations have suffered losses of Rs 1 crore and above, with three-fourths of such organisations facing financial damages exceeding Rs 5 crore.
The most affected industries include Technology, Media and Telecommunications (58 per cent), financial services (51 per cent), and manufacturing (46 per cent), highlighting the critical need for tailored anti-fraud strategies to address their unique vulnerabilities.
Further, the report said that post-COVID-19, 73 per cent of organisations have improved their governance and compliance frameworks, 63 per cent have implemented enhanced awareness training for employees, third parties, and customers, and 62 per cent are conducting continuous control assessments of high-risk areas at regular intervals.