Financial crime hit 66% Indian companies in previous 2 years, platform fraud surged: Report

New Delhi: Round 66% of Indian firms have skilled a minimum of one occasion of financial crime prior to now two years, with the covid-19 pandemic prompting a major improve in platform fraud, in line with a PwC India report .

The research, titled “Platforms: The brand new frontier of fraud in India,” is a part of PwC’s World Financial Crime and Fraud Survey 2022: India Insights collection.

Platform fraud, encompassing misleading actions on social media, e-commerce, enterprise, and fintech platforms, accounted for 57% of all fraud incidents in India. Over 26% of Indian organisations have misplaced over $1 million to such frauds, with 44% of perpetrators committing fraud for monetary achieve.

The report underscores that platforms are a brand new avenue for financial crime, with 99% of fraud incidents prior to now 24 months occurring on numerous platforms. Monetary achieve is the first motive amongst perpetrators, with model injury and aggressive benefit cited as different motivations.

Puneet Garkhel, Companion and Chief, Forensics Providers, PwC India, emphasises the necessity for organisations to put money into fraud prevention and detection methods to counter these evolving threats.

The research additionally discovered that enterprise platforms are significantly weak to malware, phishing, cash laundering, and ransomware, with monetary frauds accounting for 89% of all platform frauds. Fee fraud, significantly involving bank cards and digital wallets, accounted for 92% of all buyer frauds in India.

The report highlights that many companies stay unaware of their publicity to platform fraud and don’t view platforms as a definite sector with distinctive threat concerns. As transaction processing shifts to platforms, the accountability for safety should additionally transition, however many platforms lack the mandatory capabilities to establish, stop, and mitigate fraud.

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