India Fraud Indicator 2012 is a first-of-its kind initiative in India conducted by the Fraud Investigation & Dispute Services team to look into fraud in all spheres of society, including the business and government segments, as well as in the case of financial institutions and individuals. In-depth analysis of the report suggests that businesses are continuously exposed to fraud risks, with losses recorded in this edition accumulating to around INR66 billion.
For further information on EY's fraud investigation and dispute services, please visit: http://www.ey.com/IN/en/Services/Assurance/Fraud-Investigation---Dispute-Services
Anti-corruption laws are not sufficient and effective to curb corruption in I...Utkarsh Kumar
This document summarizes the findings of an empirical survey conducted by students at Symbiosis Law School, Pune on anti-corruption laws in India. Some key findings from the survey include:
- Over half of respondents believe corruption has increased a lot in India. Political parties were seen as the most corrupt institution while the judiciary was seen as the least corrupt.
- The main reasons for corruption cited were weak institutions/lack of control and greed/ostentatious living. Many respondents also believe the common person bargains and expects to pay bribes.
- Around 40% of respondents encounter corruption as victims or witnesses. The estimated losses to the Indian economy due to reported corruption cases from 2011
Corruption poses significant risks to India's economy and projected 9% GDP growth rate. Over two-thirds of survey respondents believe India could achieve over 9% growth if corruption was reduced. Corruption deters foreign direct investment and private investment, which have been major contributors to India's growth. It also creates a volatile political and economic environment and negatively impacts capital markets. If not controlled, corruption threatens India's competitiveness and could limit the country's economic opportunities and growth potential.
The document discusses several shocking revelations about the process of selecting the 5 shortlisted symbols for the Indian rupee symbol:
- Over 3300 designs were submitted but jurors only spent around 18 seconds reviewing each design.
- One of the shortlisted symbols was submitted by a person involved in the selection process.
- The selection process was not properly documented or transparent.
- It reveals corruption in how a prestigious national task was mishandled by government officials.
This document summarizes issues related to financial mismanagement and the link between politics and business in India. It discusses how reconciliation of accounts is rarely done properly in both governments and banks, allowing for fraud and embezzlement. It also describes specific examples of large amounts of public funds being siphoned off by politicians and funneled into private accounts with no oversight. Overall, it argues that the root cause is the cash-driven election system and lack of transparency in political party financing and appointments to senior positions in banks and government.
Corruption is widespread and systemic in India, costing the country over 6% of GDP annually according to some estimates. Getting basic tasks done often requires bribes, such as when obtaining a driver's license. While India has established many laws and institutions to address corruption, it remains rampant. Civil society organizations have also worked to increase transparency and accountability, but more reforms are still needed to significantly reduce corruption in India.
Corruption is widespread in India according to the document. India ranks 84th out of 180 countries in transparency. The economy was subject to extensive regulation and public ownership from the 1950s to 1980s, leading to corruption. A 1993 report found criminal networks connected to politicians were virtually running a parallel government. Computerization and right to information laws have helped reduce corruption, but it remains a significant problem, especially in certain states and sectors like the police and judiciary.
Application of forensic accounting a tool for confidence in auditors’ reportsAlexander Decker
The document discusses the application of forensic accounting as a tool to build confidence in auditors' reports. It examines how forensic accounting can help detect issues like fraud, theft, bribery, and intentional misstatements. The study administered questionnaires to auditing firms, legal experts, and computer specialists. The results found that forensic accounting can significantly aid in litigation, quantifying losses from theft, detecting bribery and misstatements, and finding intentional misrepresentations to auditors. The document recommends mandatory forensic accounting training for accountants to produce more reliable audit reports.
Anti-corruption laws are not sufficient and effective to curb corruption in I...Utkarsh Kumar
This document summarizes the findings of an empirical survey conducted by students at Symbiosis Law School, Pune on anti-corruption laws in India. Some key findings from the survey include:
- Over half of respondents believe corruption has increased a lot in India. Political parties were seen as the most corrupt institution while the judiciary was seen as the least corrupt.
- The main reasons for corruption cited were weak institutions/lack of control and greed/ostentatious living. Many respondents also believe the common person bargains and expects to pay bribes.
- Around 40% of respondents encounter corruption as victims or witnesses. The estimated losses to the Indian economy due to reported corruption cases from 2011
Corruption poses significant risks to India's economy and projected 9% GDP growth rate. Over two-thirds of survey respondents believe India could achieve over 9% growth if corruption was reduced. Corruption deters foreign direct investment and private investment, which have been major contributors to India's growth. It also creates a volatile political and economic environment and negatively impacts capital markets. If not controlled, corruption threatens India's competitiveness and could limit the country's economic opportunities and growth potential.
The document discusses several shocking revelations about the process of selecting the 5 shortlisted symbols for the Indian rupee symbol:
- Over 3300 designs were submitted but jurors only spent around 18 seconds reviewing each design.
- One of the shortlisted symbols was submitted by a person involved in the selection process.
- The selection process was not properly documented or transparent.
- It reveals corruption in how a prestigious national task was mishandled by government officials.
This document summarizes issues related to financial mismanagement and the link between politics and business in India. It discusses how reconciliation of accounts is rarely done properly in both governments and banks, allowing for fraud and embezzlement. It also describes specific examples of large amounts of public funds being siphoned off by politicians and funneled into private accounts with no oversight. Overall, it argues that the root cause is the cash-driven election system and lack of transparency in political party financing and appointments to senior positions in banks and government.
Corruption is widespread and systemic in India, costing the country over 6% of GDP annually according to some estimates. Getting basic tasks done often requires bribes, such as when obtaining a driver's license. While India has established many laws and institutions to address corruption, it remains rampant. Civil society organizations have also worked to increase transparency and accountability, but more reforms are still needed to significantly reduce corruption in India.
Corruption is widespread in India according to the document. India ranks 84th out of 180 countries in transparency. The economy was subject to extensive regulation and public ownership from the 1950s to 1980s, leading to corruption. A 1993 report found criminal networks connected to politicians were virtually running a parallel government. Computerization and right to information laws have helped reduce corruption, but it remains a significant problem, especially in certain states and sectors like the police and judiciary.
Application of forensic accounting a tool for confidence in auditors’ reportsAlexander Decker
The document discusses the application of forensic accounting as a tool to build confidence in auditors' reports. It examines how forensic accounting can help detect issues like fraud, theft, bribery, and intentional misstatements. The study administered questionnaires to auditing firms, legal experts, and computer specialists. The results found that forensic accounting can significantly aid in litigation, quantifying losses from theft, detecting bribery and misstatements, and finding intentional misrepresentations to auditors. The document recommends mandatory forensic accounting training for accountants to produce more reliable audit reports.
Problem & Prospects of Forensic Accounting in IndiaCA. Sanjay Ruia
This document discusses the problems and prospects of forensic accounting as a profession in India. It begins with defining forensic accounting as the combination of accounting, auditing, and investigation skills used to deter, detect, and investigate financial reporting frauds. It then discusses how forensic accounting has gained prominence in India after major corporate scandals like Satyam. While the demand for forensic accountants is rising, it remains an emerging profession with problems like a lack of expertise in law enforcement. The document explores the scope and techniques of forensic accounting and analyzes the challenges and opportunities for its growth in India.
FICCI Report on combating counterfeiting & grey market challenge for indian c...Neetu Bhatia
As Indian corporates today scale to new achieve heights
globally, the issue of counterfeit and pirated products sourced from India remains a threat not only to Made in India brand but revenue losses for the companies too.
This detailed report by FICCI in partnership with KPMG highlights the challenges faced by Indian corporates owing to counterfeiting and recommends measures.
Forensic Accounting under the Realm of Financial Crime – A Studyijtsrd
This study was conducted under the title Study of Forensic Accounting Under the Realm of Financial Crime and the article tried to achieve some objectives. These objectives are To study forensic accounting. To study the difference between forensic accounting and Traditional Accounting. To study the way forensic accounting helps to explain the nature of financial crime. This article is based on secondary data, which includes books, magazines, articles, websites, reports, etc. In this article, it is tried to introduce all the concepts related to forensic accounting. Some terms like forensic accounting, financial crime, objective of forensic accounting, and difference between traditional accounting is discussed. Forensic accounting is a term used to describe the type of interaction. This is the whole process of conducting forensic investigations, including preparing an expert report or witness statements and potentially acting as an expert witness in the legal process. Forensic accountant uses different techniques to analyses the accounting information and finding financial crimes. The forensic accountant tries to detect any errors by carefully studying the financial records and reviewing the accounting records. Mr. Sayeed Sultan Ahmad Hossaini | Ms. Fateme Samandi "Forensic Accounting under the Realm of Financial Crime – A Study" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-4 , June 2021, URL: https://www.ijtsrd.compapers/ijtsrd43641.pdf Paper URL: https://www.ijtsrd.commanagement/accounting-and-finance/43641/forensic-accounting-under-the-realm-of-financial-crime-–-a-study/mr-sayeed-sultan-ahmad-hossaini
Forensic Accounting Practices and Accountability Evidence from Ministry of Fi...ijtsrd
The main objective of the study is to determine the impact of forensic accounting practices on accountability in Anambra state ministry of finance, Awka, the specific objectives are to ascertain the extent forensic accounting practices ensure accountability in Anambra state ministry of finance and to determine whether lack of forensic accounting practices led to fraudulent activities in Anambra state ministry of finance. The study used survey research design and data were collected from questionnaires distributed from the targeted respondents. Data collected were tested using t test statistical tool. The result shows that forensic accounting practices ensure accountability in Anambra state ministry of finance and lack of forensic accounting practices led to fraudulent activities in Anambra state ministry of finance. The study recommended that government should consider providing more fraud hotlines, improve the whistle blowing policy and establish forensic accounting department in the public sector in order to enhance the fraud detective and preventive mechanism in the public sector. Obada, Paradise J. | Oraka, Azubike O. "Forensic Accounting Practices and Accountability: Evidence from Ministry of Finance, Awka" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-4 , June 2021, URL: https://www.ijtsrd.compapers/ijtsrd42521.pdf Paper URL: https://www.ijtsrd.commanagement/accounting-and-finance/42521/forensic-accounting-practices-and-accountability-evidence-from-ministry-of-finance-awka/obada-paradise-j
Findings from India Fraud Survey 2012: Fraud and Corporate Governance - Chang...EY
A report based on a survey conducted to understand the fraud scenario in India. This study aims to understand how businesses have coped with increasing fraud and corruption risk last year, what the emerging fraud risks in the industry are and the measures taken by various organizations to mitigate these risks.
For further information on EY's fraud investigation and dispute services, please visit: http://www.ey.com/IN/en/Services/Assurance/Fraud-Investigation---Dispute-Services
This document discusses various corruption scandals that have occurred in India. It begins with an introduction stating that corruption is a major issue in India according to Transparency International studies. It then summarizes several major corruption scandals in India, including the Indian coal allocation scam, 2G spectrum scam, Commonwealth Games scam, Uttar Pradesh NRHM scam, Satyam scam, Saradha Group financial scandal, IPL scam, the fodder scam, and the Bofors scam. It discusses the impact of corruption on the Indian economy and businesses, citing a KPMG India study. Real estate, telecommunications, and public works are perceived as the most corrupt industries.
Effect of Forensic Accounting on Accountability Evidence from Ministry of Fin...ijtsrd
The main objective of the study is to determine the effect of forensic accounting on accountability in Anambra state ministry of finance, Awka, the specific objectives are to ascertain the extent forensic accounting practices ensure accountability in Anambra state ministry of finance and to determine whether lack of forensic accounting practices led to fraudulent activities in Anambra state ministry of finance. The study used survey research design and data were collected from questionnaires distributed from the targeted respondents. Data collected were tested using t test statistical tool. The result shows that forensic accounting practices ensure accountability in Anambra state ministry of finance and lack of forensic accounting practices led to fraudulent activities in Anambra state ministry of finance. The study recommended that government should consider providing more fraud hotlines, improve the whistle blowing policy and establish forensic accounting department in the public sector in order to enhance the fraud detective and preventive mechanism in the public sector. Ofurum, Darlington I | Falope, Femi J | Clement Ikwuoche G. (ACA) ""Effect of Forensic Accounting on Accountability: Evidence from Ministry of Finance, Awka"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-2 , February 2020,
URL: https://www.ijtsrd.com/papers/ijtsrd30129.pdf
Paper Url : https://www.ijtsrd.com/management/accounting-and-finance/30129/effect-of-forensic-accounting-on-accountability-evidence-from-ministry-of-finance-awka/ofurum-darlington-i
The project analyses the mergers and acquisitions that have happened in the e-commerce industry and tries to comment on whether the valuations are justified. It also discusses the sustainability of the current discount model the industry is following.
Forensic Accounting - Tool for Fraud PreventionCA. Sanjay Ruia
The document discusses forensic accounting as a tool for fraud detection and prevention in the public sector. It examines the use of forensic accountants in selected ministries in Kogi State, Nigeria. The study found that the use of forensic accounting significantly reduces fraud cases compared to traditional external auditors. Forensic accountants are better equipped than external auditors to detect and prevent fraud through their investigative skills and fraud-focused approach. The document recommends replacing external auditors with forensic accountants in Kogi State and providing training to staff on forensic accounting techniques.
This document examines fraud prevention and internal controls in the Nigerian banking system. It uses both primary and secondary data to analyze the effectiveness of internal controls and identify factors that influence fraud. The primary data uses questionnaires from four banks to test how separation of duties, monitoring, and staff qualifications impact internal controls. The secondary data uses bank profit, regulation, technology, and M2 levels to further explore their impact on actual losses, weighted losses, and percentage increases in losses. Regression analysis is used to analyze the relationships between these factors. The results show that internal controls are effective against fraud but not all staff commit to them fully. The secondary data supports and expands on this by showing M2 levels, staff qualifications and technology have significant impacts across
Etude PwC "Crime Survey 2014" sur la fraude dans le secteur pharmaceutique (o...PwC France
This document summarizes the key findings of a PwC survey on economic crime in the pharmaceutical and life sciences sector. Some of the main points include:
- Bribery and corruption were the second most commonly reported type of economic crime, with over 30% of respondents reporting incidents. Damage to corporate reputation was seen as the most severe impact.
- Over half of companies have operations in high-risk markets for corruption, and many have adapted strategies like additional due diligence training to address risks.
- Controls are effective at detecting fraud, with over 60% of serious crimes found through corporate monitoring. However, few conduct regular fraud risk assessments.
- Internal perpetrators commit a greater percentage of crimes
IRJET-Anti Money Laundering System to Detect Suspicious AccountIRJET Journal
This document presents a proposed anti-money laundering system that uses data mining techniques like the Apriori algorithm and graph theory to identify money laundering transactions. Money laundering occurs in three stages: placement, layering, and integration. The proposed system aims to identify the traversal path of laundered money in the layering stage using hash-based association and detect agents and integrators. It also proposes using behavior and location analysis to detect credit card fraud without requiring fraud signatures by analyzing spending habits and geographic locations. The system would analyze credit card transaction data for unusual patterns compared to a user's previous behavior to potentially flag suspicious transactions.
Initiation of Forensic Accounting Investigation of Public Sector Corruption (...Premier Publishers
The aim of this paper was to gain an understanding of the processes of the initiation of forensic accounting investigation from the perspective of experts in the Nigerian leading anti-corruption body, the Economic and Financial Crimes Commission (EFCC). This qualitative case study mode of enquiry finds four means as precursors to the forensic accounting investigation of PSC in EFCC. The use of media report, intelligent report, whistle blowing and petitions were identified as triggering the commission of forensic accounting investigation of PSC in EFCC. However, a cursory look at these processes revealed that EFCC is more reactive type of investigation organization rather than the proactive one. Hence, EFCC is recommended to strongly imbibe the proactive type of forensic accounting investigation of PSC.
The UK India Business Council released its 5th annual "Doing Business in India" report, which found that UK companies are generally upbeat about doing business in India. Some key findings:
- 56% of UK companies said it is getting easier to do business in India. Perceptions of corruption as a barrier dropped sharply from over 50% in 2014 to 17.5% in 2019.
- Legal/regulatory impediments remain the top barrier cited at 59%, followed by identifying partners and taxation issues.
- 26% of UK companies plan to do more business with India after Brexit.
- Maharashtra was seen as the best state for ease of doing business, followed by Delhi. Bureaucracy
This document summarizes the key findings of research conducted by Transparency International on anti-corruption efforts in six South Asian countries. It finds that while countries have passed some anti-corruption laws, political interference and lack of independence weaken enforcement. Citizens face challenges accessing information and there is little whistleblower protection. As a result, corruption is increasing and accountability is lacking. The report calls for strengthening rights to information, whistleblower protection, and the independence of anti-corruption agencies and judiciaries.
This document is a project report on forensic accounting in India written by Sridevi H.V. It discusses the evolution and increasing importance of forensic accounting due to rising financial frauds. It outlines the objectives and methodology of the study. Forensic accounting involves detecting fraud and investigating accounting irregularities by looking beyond raw numbers and applying skills from accounting, auditing and law. It is useful for fraud examinations, dispute resolution, and other legal proceedings. However, forensic accountants in India face difficulties due to a lack of organized databases and sometimes unreasonable client expectations. The report examines the nature, role and techniques of forensic accounting as well as common types of financial frauds.
This document contains multiple news stories and articles on various topics:
1. Cobrapost exposes alleged money laundering by 10 more Indian banks while RBI remains hesitant to acknowledge the problem.
2. iGate fires CEO Phaneesh Murthy for failing to disclose a relationship with a subordinate in a sexual harassment complaint, the second such incident for Murthy.
3. FINRA fines three firms a total of $900,000 for failing to establish adequate anti-money laundering programs and supervisory systems to detect suspicious transactions.
India's fintech sector is growing rapidly, fueled by a large market base, innovation, and supportive government policies. Several startups offer fintech services like peer-to-peer lending, payments, remittances, and personal finance management. Both traditional banks and new fintech companies are disrupting the financial sector by using technology to improve access and efficiency of financial services. While fintech startups face challenges in scaling up, the large untapped market and supportive regulations provide opportunities for expansion. Collaboration between fintech and traditional banks also has potential to foster innovation and inclusion.
All product and company names mentioned herein are for identification and educational purposes only and are the property of, and may be trademarks of, their respective owners.
This document provides background information on the corporate fraud cases of Enron and Satyam Computers. It discusses how both companies inflated assets and misrepresented their financial situations through fraudulent accounting practices. Enron hid losses by moving them to off-balance sheet entities and claiming projected profits immediately. Satyam founder Ramalinga Raju attempted to cover up fraud by proposing an acquisition of companies owned by his sons, though the deal was cancelled. Both cases ultimately led to bankruptcy or serious legal and financial consequences as a result of the fraudulent activities.
This document discusses insurance fraud and provides a blueprint for how insurers can effectively manage fraud. It summarizes that while insurers have improved fraud detection, more can be done to prevent fraud through a holistic approach. It also notes that fraud is a complex issue and solutions are not straightforward. The document advocates for clear fraud leadership, engaging all business areas, improving data sharing, and strengthening relationships with outside organizations to best address fraud.
Value proposition of analytics in P&C insuranceGregg Barrett
The document provides an overview of the value of analytics in the property and casualty (P&C) insurance industry. It discusses the challenges facing the industry and how analytics can help insurers address these challenges. The document is divided into six sections that cover topics such as the impact of analytics across the insurance life cycle, the value of data and analytics, and considerations for implementing analytics and managing big data. Organizations that effectively adopt analytics are shown to achieve greater growth and returns. While analytics provides opportunities, the document also notes challenges such as developing a data-driven culture and addressing privacy and ethical issues that can arise from certain data collection and analytic practices.
Problem & Prospects of Forensic Accounting in IndiaCA. Sanjay Ruia
This document discusses the problems and prospects of forensic accounting as a profession in India. It begins with defining forensic accounting as the combination of accounting, auditing, and investigation skills used to deter, detect, and investigate financial reporting frauds. It then discusses how forensic accounting has gained prominence in India after major corporate scandals like Satyam. While the demand for forensic accountants is rising, it remains an emerging profession with problems like a lack of expertise in law enforcement. The document explores the scope and techniques of forensic accounting and analyzes the challenges and opportunities for its growth in India.
FICCI Report on combating counterfeiting & grey market challenge for indian c...Neetu Bhatia
As Indian corporates today scale to new achieve heights
globally, the issue of counterfeit and pirated products sourced from India remains a threat not only to Made in India brand but revenue losses for the companies too.
This detailed report by FICCI in partnership with KPMG highlights the challenges faced by Indian corporates owing to counterfeiting and recommends measures.
Forensic Accounting under the Realm of Financial Crime – A Studyijtsrd
This study was conducted under the title Study of Forensic Accounting Under the Realm of Financial Crime and the article tried to achieve some objectives. These objectives are To study forensic accounting. To study the difference between forensic accounting and Traditional Accounting. To study the way forensic accounting helps to explain the nature of financial crime. This article is based on secondary data, which includes books, magazines, articles, websites, reports, etc. In this article, it is tried to introduce all the concepts related to forensic accounting. Some terms like forensic accounting, financial crime, objective of forensic accounting, and difference between traditional accounting is discussed. Forensic accounting is a term used to describe the type of interaction. This is the whole process of conducting forensic investigations, including preparing an expert report or witness statements and potentially acting as an expert witness in the legal process. Forensic accountant uses different techniques to analyses the accounting information and finding financial crimes. The forensic accountant tries to detect any errors by carefully studying the financial records and reviewing the accounting records. Mr. Sayeed Sultan Ahmad Hossaini | Ms. Fateme Samandi "Forensic Accounting under the Realm of Financial Crime – A Study" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-4 , June 2021, URL: https://www.ijtsrd.compapers/ijtsrd43641.pdf Paper URL: https://www.ijtsrd.commanagement/accounting-and-finance/43641/forensic-accounting-under-the-realm-of-financial-crime-–-a-study/mr-sayeed-sultan-ahmad-hossaini
Forensic Accounting Practices and Accountability Evidence from Ministry of Fi...ijtsrd
The main objective of the study is to determine the impact of forensic accounting practices on accountability in Anambra state ministry of finance, Awka, the specific objectives are to ascertain the extent forensic accounting practices ensure accountability in Anambra state ministry of finance and to determine whether lack of forensic accounting practices led to fraudulent activities in Anambra state ministry of finance. The study used survey research design and data were collected from questionnaires distributed from the targeted respondents. Data collected were tested using t test statistical tool. The result shows that forensic accounting practices ensure accountability in Anambra state ministry of finance and lack of forensic accounting practices led to fraudulent activities in Anambra state ministry of finance. The study recommended that government should consider providing more fraud hotlines, improve the whistle blowing policy and establish forensic accounting department in the public sector in order to enhance the fraud detective and preventive mechanism in the public sector. Obada, Paradise J. | Oraka, Azubike O. "Forensic Accounting Practices and Accountability: Evidence from Ministry of Finance, Awka" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-4 , June 2021, URL: https://www.ijtsrd.compapers/ijtsrd42521.pdf Paper URL: https://www.ijtsrd.commanagement/accounting-and-finance/42521/forensic-accounting-practices-and-accountability-evidence-from-ministry-of-finance-awka/obada-paradise-j
Findings from India Fraud Survey 2012: Fraud and Corporate Governance - Chang...EY
A report based on a survey conducted to understand the fraud scenario in India. This study aims to understand how businesses have coped with increasing fraud and corruption risk last year, what the emerging fraud risks in the industry are and the measures taken by various organizations to mitigate these risks.
For further information on EY's fraud investigation and dispute services, please visit: http://www.ey.com/IN/en/Services/Assurance/Fraud-Investigation---Dispute-Services
This document discusses various corruption scandals that have occurred in India. It begins with an introduction stating that corruption is a major issue in India according to Transparency International studies. It then summarizes several major corruption scandals in India, including the Indian coal allocation scam, 2G spectrum scam, Commonwealth Games scam, Uttar Pradesh NRHM scam, Satyam scam, Saradha Group financial scandal, IPL scam, the fodder scam, and the Bofors scam. It discusses the impact of corruption on the Indian economy and businesses, citing a KPMG India study. Real estate, telecommunications, and public works are perceived as the most corrupt industries.
Effect of Forensic Accounting on Accountability Evidence from Ministry of Fin...ijtsrd
The main objective of the study is to determine the effect of forensic accounting on accountability in Anambra state ministry of finance, Awka, the specific objectives are to ascertain the extent forensic accounting practices ensure accountability in Anambra state ministry of finance and to determine whether lack of forensic accounting practices led to fraudulent activities in Anambra state ministry of finance. The study used survey research design and data were collected from questionnaires distributed from the targeted respondents. Data collected were tested using t test statistical tool. The result shows that forensic accounting practices ensure accountability in Anambra state ministry of finance and lack of forensic accounting practices led to fraudulent activities in Anambra state ministry of finance. The study recommended that government should consider providing more fraud hotlines, improve the whistle blowing policy and establish forensic accounting department in the public sector in order to enhance the fraud detective and preventive mechanism in the public sector. Ofurum, Darlington I | Falope, Femi J | Clement Ikwuoche G. (ACA) ""Effect of Forensic Accounting on Accountability: Evidence from Ministry of Finance, Awka"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-2 , February 2020,
URL: https://www.ijtsrd.com/papers/ijtsrd30129.pdf
Paper Url : https://www.ijtsrd.com/management/accounting-and-finance/30129/effect-of-forensic-accounting-on-accountability-evidence-from-ministry-of-finance-awka/ofurum-darlington-i
The project analyses the mergers and acquisitions that have happened in the e-commerce industry and tries to comment on whether the valuations are justified. It also discusses the sustainability of the current discount model the industry is following.
Forensic Accounting - Tool for Fraud PreventionCA. Sanjay Ruia
The document discusses forensic accounting as a tool for fraud detection and prevention in the public sector. It examines the use of forensic accountants in selected ministries in Kogi State, Nigeria. The study found that the use of forensic accounting significantly reduces fraud cases compared to traditional external auditors. Forensic accountants are better equipped than external auditors to detect and prevent fraud through their investigative skills and fraud-focused approach. The document recommends replacing external auditors with forensic accountants in Kogi State and providing training to staff on forensic accounting techniques.
This document examines fraud prevention and internal controls in the Nigerian banking system. It uses both primary and secondary data to analyze the effectiveness of internal controls and identify factors that influence fraud. The primary data uses questionnaires from four banks to test how separation of duties, monitoring, and staff qualifications impact internal controls. The secondary data uses bank profit, regulation, technology, and M2 levels to further explore their impact on actual losses, weighted losses, and percentage increases in losses. Regression analysis is used to analyze the relationships between these factors. The results show that internal controls are effective against fraud but not all staff commit to them fully. The secondary data supports and expands on this by showing M2 levels, staff qualifications and technology have significant impacts across
Etude PwC "Crime Survey 2014" sur la fraude dans le secteur pharmaceutique (o...PwC France
This document summarizes the key findings of a PwC survey on economic crime in the pharmaceutical and life sciences sector. Some of the main points include:
- Bribery and corruption were the second most commonly reported type of economic crime, with over 30% of respondents reporting incidents. Damage to corporate reputation was seen as the most severe impact.
- Over half of companies have operations in high-risk markets for corruption, and many have adapted strategies like additional due diligence training to address risks.
- Controls are effective at detecting fraud, with over 60% of serious crimes found through corporate monitoring. However, few conduct regular fraud risk assessments.
- Internal perpetrators commit a greater percentage of crimes
IRJET-Anti Money Laundering System to Detect Suspicious AccountIRJET Journal
This document presents a proposed anti-money laundering system that uses data mining techniques like the Apriori algorithm and graph theory to identify money laundering transactions. Money laundering occurs in three stages: placement, layering, and integration. The proposed system aims to identify the traversal path of laundered money in the layering stage using hash-based association and detect agents and integrators. It also proposes using behavior and location analysis to detect credit card fraud without requiring fraud signatures by analyzing spending habits and geographic locations. The system would analyze credit card transaction data for unusual patterns compared to a user's previous behavior to potentially flag suspicious transactions.
Initiation of Forensic Accounting Investigation of Public Sector Corruption (...Premier Publishers
The aim of this paper was to gain an understanding of the processes of the initiation of forensic accounting investigation from the perspective of experts in the Nigerian leading anti-corruption body, the Economic and Financial Crimes Commission (EFCC). This qualitative case study mode of enquiry finds four means as precursors to the forensic accounting investigation of PSC in EFCC. The use of media report, intelligent report, whistle blowing and petitions were identified as triggering the commission of forensic accounting investigation of PSC in EFCC. However, a cursory look at these processes revealed that EFCC is more reactive type of investigation organization rather than the proactive one. Hence, EFCC is recommended to strongly imbibe the proactive type of forensic accounting investigation of PSC.
The UK India Business Council released its 5th annual "Doing Business in India" report, which found that UK companies are generally upbeat about doing business in India. Some key findings:
- 56% of UK companies said it is getting easier to do business in India. Perceptions of corruption as a barrier dropped sharply from over 50% in 2014 to 17.5% in 2019.
- Legal/regulatory impediments remain the top barrier cited at 59%, followed by identifying partners and taxation issues.
- 26% of UK companies plan to do more business with India after Brexit.
- Maharashtra was seen as the best state for ease of doing business, followed by Delhi. Bureaucracy
This document summarizes the key findings of research conducted by Transparency International on anti-corruption efforts in six South Asian countries. It finds that while countries have passed some anti-corruption laws, political interference and lack of independence weaken enforcement. Citizens face challenges accessing information and there is little whistleblower protection. As a result, corruption is increasing and accountability is lacking. The report calls for strengthening rights to information, whistleblower protection, and the independence of anti-corruption agencies and judiciaries.
This document is a project report on forensic accounting in India written by Sridevi H.V. It discusses the evolution and increasing importance of forensic accounting due to rising financial frauds. It outlines the objectives and methodology of the study. Forensic accounting involves detecting fraud and investigating accounting irregularities by looking beyond raw numbers and applying skills from accounting, auditing and law. It is useful for fraud examinations, dispute resolution, and other legal proceedings. However, forensic accountants in India face difficulties due to a lack of organized databases and sometimes unreasonable client expectations. The report examines the nature, role and techniques of forensic accounting as well as common types of financial frauds.
This document contains multiple news stories and articles on various topics:
1. Cobrapost exposes alleged money laundering by 10 more Indian banks while RBI remains hesitant to acknowledge the problem.
2. iGate fires CEO Phaneesh Murthy for failing to disclose a relationship with a subordinate in a sexual harassment complaint, the second such incident for Murthy.
3. FINRA fines three firms a total of $900,000 for failing to establish adequate anti-money laundering programs and supervisory systems to detect suspicious transactions.
India's fintech sector is growing rapidly, fueled by a large market base, innovation, and supportive government policies. Several startups offer fintech services like peer-to-peer lending, payments, remittances, and personal finance management. Both traditional banks and new fintech companies are disrupting the financial sector by using technology to improve access and efficiency of financial services. While fintech startups face challenges in scaling up, the large untapped market and supportive regulations provide opportunities for expansion. Collaboration between fintech and traditional banks also has potential to foster innovation and inclusion.
All product and company names mentioned herein are for identification and educational purposes only and are the property of, and may be trademarks of, their respective owners.
This document provides background information on the corporate fraud cases of Enron and Satyam Computers. It discusses how both companies inflated assets and misrepresented their financial situations through fraudulent accounting practices. Enron hid losses by moving them to off-balance sheet entities and claiming projected profits immediately. Satyam founder Ramalinga Raju attempted to cover up fraud by proposing an acquisition of companies owned by his sons, though the deal was cancelled. Both cases ultimately led to bankruptcy or serious legal and financial consequences as a result of the fraudulent activities.
This document discusses insurance fraud and provides a blueprint for how insurers can effectively manage fraud. It summarizes that while insurers have improved fraud detection, more can be done to prevent fraud through a holistic approach. It also notes that fraud is a complex issue and solutions are not straightforward. The document advocates for clear fraud leadership, engaging all business areas, improving data sharing, and strengthening relationships with outside organizations to best address fraud.
Value proposition of analytics in P&C insuranceGregg Barrett
The document provides an overview of the value of analytics in the property and casualty (P&C) insurance industry. It discusses the challenges facing the industry and how analytics can help insurers address these challenges. The document is divided into six sections that cover topics such as the impact of analytics across the insurance life cycle, the value of data and analytics, and considerations for implementing analytics and managing big data. Organizations that effectively adopt analytics are shown to achieve greater growth and returns. While analytics provides opportunities, the document also notes challenges such as developing a data-driven culture and addressing privacy and ethical issues that can arise from certain data collection and analytic practices.
Kelly Riddle of Kelmar Global shares tips for conducting insurance investigations.
To watch the webinar recording, visit: http://i-sight.com/webinar-investigating-insurance-fraud/
This document provides an overview of a project report on the recruitment and selection procedures at Bharti AXA Life Insurance Company Limited. It includes an acknowledgement, declaration, table of contents, introduction on the importance of recruitment and selection for businesses. It also includes a company profile of Bharti AXA Life Insurance, their HR policies, selection process details, findings and suggestions from interviews. In conclusion, it aimed to study the recruitment and retention procedures at Bharti AXA Life Insurance.
A project report on Forensic Accounting and AuditingDannyNaik
This document is a project report on forensic accounting and auditing submitted by Durvesh S. Naik to Mulund College of Commerce in Mumbai, India in 2014-2015. It includes an introduction to forensic accounting, definitions, types of frauds, uses of forensic accounting, roles and skills of forensic accountants. It also discusses the increasing need for forensic audits in India due to rising corporate fraud and changes in the Companies Act that require fraud risk management policies. The document provides an overview of the field of forensic accounting and its growing importance in the Indian business environment.
Proving Insurance Fraud: Real Case StudiesRob Pohls
This case involves a $50,000 life insurance policy where the proposed insured, Stacey, died one day after the policy was approved. The insurer investigated and found inconsistencies in the application and interviews. Medical records showed Stacey had significant health issues contradicting the application. The insurer denied the claim, suspecting insurance fraud by the applicant and beneficiary, Cynthia and her children.
Export Credit Insurance (ECGC) provides insurance to exporters against payment risks from overseas buyers. Payments for exports face risks from events like war, economic crises, or buyer insolvency. ECGC was established by the Indian government to encourage exports by protecting exporters from these political and commercial risks. It offers various insurance covers to exporters and guarantees to banks to facilitate export financing. The insurance enables exporters to confidently expand overseas business without fear of losses from unpaid exports.
The document provides a detailed history of insurance beginning in ancient times. It discusses how early forms of insurance emerged in China, Babylon, and Persia to help communities cope with risks like shipwrecks or famines. Formal insurance contracts first appeared in 14th century Genoa and later spread to London. The Great Fire of London in 1666 spurred the development of fire insurance. The first insurance company in the US was established in Charleston, South Carolina in 1732 to provide fire insurance. Regulation of the insurance industry began in the 19th century at the state level. The document then provides milestones in the evolution of insurance in India and the nationalization of the life and general insurance sectors in India in 1956 and
Fraud and corporate governance changing paradigm in India 2012EY
This report offers a perspective on the bribery landscape across Europe, the Middle East, India and Africa (EMEIA), including enforcement trends, risks for businesses to be aware of and mitigating steps companies may want to consider.
For further information on EY's fraud investigation and dispute services, please visit: http://www.ey.com/IN/en/Services/Assurance/Fraud-Investigation---Dispute-Services
Frauds in Indian Banking: Aspects, Reasons, Trend-Analysis and Suggestive Mea...inventionjournals
Frauds (basis amount of money involved) in Indian banking have seen a rising trend over the last few years. The statement is just basis the cases reported by member banks in India; the unreported figures could be still higher. Against this backdrop and coupled with rising NPAs and more usage of alternate technological modes of baking, it is essential that banks relook at the time and amount of attention that they normally have been giving to frauds and proactive measures to prevent the same. This paper discusses the various aspects of frauds in Indian banking system. It evaluates the statistics involved with fraud basis secondary data available from reliable sources and also analyses the same. Each of the types namely KYC related, loan related and technological aspects are discussed in details along with the reasons. At the end, some suggestions are placed for banks to practice.
1) The document discusses financial fraud that has occurred in listed Chinese companies and proposes using blockchain technology to address this issue.
2) It analyzes the current situation of financial fraud in listed Chinese companies, including common means of fraud like falsifying economic contracts and bank statements.
3) The document then describes key characteristics of blockchain technology, such as its decentralized structure and consensus mechanism, arguing this could reduce the possibility of financial fraud in listed companies.
IRJET- A Study on the Impact of Macroeconomic Variables on Financial Crim...IRJET Journal
This document summarizes a research study on the impact of macroeconomic variables like inflation and gross domestic product on financial crime in the Indian banking sector. The study uses data analysis tools to analyze secondary data over 10 years and finds a long-run relationship between the variables of fraud, GDP, and inflation. It determines that fraud has a significant effect on macroeconomic variables in the long term. The objectives are to examine the trends in these variables and their relationship, and provide recommendations.
This presentation is an overview of Fraud Risk Management in Indian companies and the role of the Board of Directors in the context of the newly enacted Companies Act, 2013.
Deloitte India’s Edition IV of India Corporate Fraud Perception Surveyaakash malhotra
Deloitte India has released the India Corporate Fraud Perception Survey, Edition IV to understand the leadership perspective about corporate fraud in the disruptive environment. The survey report has been drawn from the responses of leading CXOs and working professionals to a questionnaire provided to them. The survey highlights fraud schemes, corporate fraud preparedness, fraud risk management framework, and the role of technology in preventing corporate fraud. See More: https://www2.deloitte.com/in/en/pages/finance/articles/in-fa-india-corporate-fraud-perception-survey-edition-IV-noexp.html
This literature review is organized in five sections. Firstly, we begin with general ideas and continue with the origin of the fraudulent. Secondly, we discuss the struggle of the phenomena, insisting on the available mechanisms. Finally, we’ll discuss the link between audit and fraud.
This document summarizes research on corruption in developing countries. It discusses methods for estimating the magnitude of corruption, the efficiency costs of corruption, and determinants of corruption levels. Regarding estimates of corruption, methods include perceptions, surveys, direct observation, and market inference, but all may suffer from biases. Corruption imposes efficiency costs on firms, governments, and individuals. Determinants of corruption include compensation, monitoring/punishments, selection effects, transparency, and technology. Strategic interactions between corrupt officials can also impact corruption levels. Overall, the research shows that corruption responds to incentives and anti-corruption policies may have larger long-term effects than short-term effects.
This document summarizes the key findings from a PricewaterhouseCoopers survey on economic crime. Some of the main points include:
1) 37% of respondents reported experiencing economic crime, up from 34% in 2011. The most common types were asset misappropriation, procurement fraud, and bribery/corruption.
2) Regions with the highest reported economic crime were Africa (50%) and North America (41%). Industries like financial services, retail, and communications reported among the highest levels.
3) The costs of economic crime go beyond direct financial losses, including damage to employee morale, reputation, and business relationships. Many respondents reported over $1 million in losses from economic
This document proposes a new framework called the "fraud evasion triangle" to explain why fraud is difficult to detect in today's business environment. It identifies three key factors that obstruct fraud detection: 1) Crafty perpetrators who are knowledgeable about the business and take steps to commit fraud without getting caught; 2) Dependent internal auditors who lack independence, proper training, and experience to detect complex fraud schemes; and 3) Limitations in external audits which are not specifically designed to detect fraud and rely on management assertions. The document argues that understanding these obstructing factors is important to developing new approaches to combat fraud. It proposes solutions like limiting senior executive tenure, encouraging whistleblowing, improving corporate culture, and increasing fraud
This book focuses on a ‘detailed-commentary’ and ‘step-by-step approach’ for the Forensic Audit of Financial Transactions. It also deals with each and every aspect of Forensic Audit of various items of statement of Profit & Loss and Balance Sheet.
The Present Publication is the Latest Edition & is updated with all amendments and legal position up to July 2020, authored by G.C. Pipara.
Understanding the Forensic Audit is not complete, without actual Case Analysis and this book includes analysis of actual company cases relating to Forensic Audit, where either fraud or misrepresentation of information is found. With the help of Case Analysis, how to achieve the maximum objective of Forensic Audit, has been explained in a lucid language with step by step approach.
Each part of this book deals with the different segments of the forensic audit and each part has been devised carefully, keeping in mind – ‘Maximum Result’ and with an objective that the real purpose of Forensic Audit is served.
This book deals with –
· Misstatement of information in the financial statement,
· Incorrect details in the financial statement,
· Diversion of funds by an entity,
· Siphoning of Funds by an entity,
· Fraud in some of the transactions undertaken by the entity,
· Fraud in books of accounts and other records,
· Fraud in the balance sheet – one which is even audited,
· Fraud by the auditor in helping the organization to accomplish its intention etc.
The structure of the Book is as follows:
· Part One
Deals with the introduction of the forensic audit and look into the past, present and future of forensic audit. This part is presented to establish the foundation of the book.
· Part Two
Deals with important transactions pertaining to purchases of goods, sales and other major expenditures - which forms part of the statement of profit & loss account. Provisions and contingent liabilities are often used by an entity to cook the books of account and therefore, a separate chapter is presented on this issue.
· Part Three
The various items contained in the balance sheet, are a major part of the activities of any entity and therefore, is a major part of any forensic audit also. Therefore, in this part of the book, the following important activities of an entity’s are covered:
o Fixed (Hard) Assets – hard to spot
o Intangible Assets and Goodwill – neither visible nor real
o Capital Work In Progress (CWIP), Stock In Progress (SIP), and Stock – not seeing the light of day
o Piling Stock and Mounting Debtors – an evergreen technique for every-greening
o Investments – without objectives like a traveler without a destination
o Loans and Advances given – gone with the wind
o Equity and Shareholders – invisible ownership
Learn More
This white paper discusses challenges that financial institutions face in managing enterprisewide fraud. It notes that fraud is increasing in volume and sophistication, targeting the fastest growing channels like online and mobile that are most vulnerable. Traditionally, fraud has been managed within business unit silos rather than taking an enterprisewide view. This allows fraudsters, who view the institution holistically, to exploit inconsistencies. The paper recommends analyzing patterns and perpetrators across the entire enterprise to better prevent, detect, and investigate fraud.
The survey summarizes the key findings of the Study of Private Perceptions of Corruption (STOPP) survey conducted in Mongolia. It found that small and medium businesses suffer more from corruption than large businesses. The government agencies creating the most obstacles for businesses were reported as the Tax Office, Specialized Inspection Agency, and Customs. Despite anti-corruption efforts, there was little awareness of these efforts among the business community.
One of NIGERIA’S greatest challenges is CORRUPTION – in Public and Private Institutions – which has greatly affected her development as well as how her Citizens are treated in other countries. This analysis takes an in-depth look TI CPI of Nigeria from 1998 till date.
Money Laundering and Its Fall-out - Other Bodies also work hand-in-hand to k...Resurgent India
This document discusses several bodies that work to prevent money laundering in India. It outlines the roles of the Financial Intelligence Unit - India (FIU-IND), the Reserve Bank of India (RBI), and the Securities and Exchange Board of India (SEBI) in receiving reports, regulating financial institutions, and monitoring the securities market. It also describes problems with India's anti-money laundering efforts, such as a slow enforcement mechanism, growing technology enabling laundering, public unawareness, ineffective know-your-customer norms, smuggling, and a lack of single comprehensive enforcement agency.
The India Risk Survey 2015 analyzes and quantifies ‘potentially destructive’ risks to business enterprises in the country. It provides a referral to understand the complexity of these new risks across the spectrum of stakeholders, i.e., policymakers, corporate and members of the civil society. It also aims to prioritize risks which will enable many industries, public and private, to allocate resources required for its mitigation. The survey is an attempt to sensitise the Government and the corporate world about the emerging risks and the danger they pose, so that a well-planned strategic policy decision could be formulated and implemented.
Corporate fraud and corruption are growing problems globally according to the document. Some key points:
- Developing countries lost nearly $1 trillion to corruption, tax evasion, and trade misinvoicing in 2011 alone. Over the past decade, these countries lost almost $6 trillion illicitly.
- Fraud affects 70% of companies annually on average, costing 1.4% of revenues. Common fraud types include asset misappropriation, corruption, and financial statement fraud.
- Median fraud losses are $145,000 but 22% of cases result in losses over $1 million. Cases involving collusion or multiple perpetrators tend to be more costly.
- While no country is immune
The theme for this quarter is momentum meets uncertainty. The upward trend in crude oil, natural gas, LNG and refined product prices that began in Q1 continued into Q2. Crude oil markets began the quarter just below $100/bbl and have closed below that level on only two days since late April. As we begin Q3, there are increasing concerns about the health of the global economy and how that might affect oil and gas demand.
Quarterly analyst themes of oil and gas earnings, Q1 2022EY
Financial questions continued to attract the most attention of the analyst community, with major focus on how companies will respond to the war in Ukraine, elevated commodity prices and improved cash flows. Strategic questions focused on how the changing geopolitical environment will affect capital allocation in the short and long term. Operationally, all eyes were on the capacity of companies to step up asset utilization and bring new projects to market quickly. Explore the latest EY quarterly analysts themes.
EY Price Point: global oil and gas market outlook, Q2 | April 2022EY
The theme for this quarter is rearrangement. The loss, or potential loss, of Russian oil and gas supplies is forcing producers, refiners and traders to rethink the flow of crude oil and refined products from the wellhead to the gas pump in light of sanctions, potential sanctions and the risk of reputational damage. Countries, companies and consumers will all be searching for ways to adapt, and the outcome of the race to bring alternatives to market could alter the global energy landscape for years to come.
It is likely crude oil and LNG prices will remain elevated for some time. The process of diverting Russian oil through countries unwilling to sanction it will take time and there is little indication OPEC members are willing (or able) to increase production to make up for the loss of Russian crude. Spare capacity sat at 3.7 mbpd at the end of 2021, just above where it was in January 2020. Currently, sanctioned Venezuelan and Iranian production (about 3 mbpd below their peak) could fill the gap, but political and commercial obstacles remain. At today’s prices, US shale production is attractive, but the fastest the industry has been able to grow is between 1mbpd and 2mbpd per year. The LNG infrastructure was already stretched before the war in Ukraine and there is little prosect of finding new supplies soon.
As the largest buyer of Russian energy, Europe will be the epicenter. There is a deeply embedded bias there in favor for renewable energy, and the current crisis is certain to result in an all-out effort to accelerate the build-out of wind and solar power. The capacity to add new green energy is limited though by the project pipeline and supply chains for solar panels and wind turbines, and it is likely that much of the shortfall will be made up with the new LNG infrastructure.
EY Price Point: global oil and gas market outlookEY
As the last quarter of the second pandemic year draws to a close, we continue to see heightened contrast
between the medical and economic points of view. While COVID-19 cases are close to their all-time highs, so
are equity prices, and a leading investment bank declared (on 2 December, 2021 after the Omicron outbreak in South Africa) that it was “optimistic about the possibility of a vibrant 2022.” When news of the variant hit in
late November, the markets were rocked by the prospect of yet another round of local mobility restrictions and
an interrupted return to normal international travel patterns, on top of the Biden Administration’s announced
release of 50 million barrels of crude from the US Strategic Petroleum Reserve. So far though, with OPEC
standing by its planned gradual return to normal production, oil prices have stabilized, albeit below where they
were in mid-November. Henry Hub prices, always at the mercy of the weather, responded predictably to a
warmer-than-normal early winter in the US, falling from US$6.60/MMBtu in early October to below
US$4.00/MMBtu by mid-December. In Europe and Asia, following a short reprieve at the start of the quarter,
piped natural gas prices have spiked again on concerns triggered by Russian troop buildups on the Ukraine
border and uncertainties surrounding the Nordstream 2 pipeline. Looking forward, OPEC and the U.S. Energy
Information Administration (EIA) in their last forecasts of the year both projected that 2022 oil demand would
be above what we saw in 2019. Although time will tell if those forecasts are realized and other events could
intervene, the response to new virus outbreaks is well-practiced and the trade-off between public health and
economic reality has tipped toward a cautiously optimistic view.
EY Price Point: global oil and gas market outlook, Q2 April 2021EY
The theme for this quarter is governed. Apparent market balance at prices that could be sustainable is the product of calculated choices by market leaders and the cooperation of those who follow them. Economics played their customary role as well, with capital scarcity in North America taking about 2 million barrels per day out of the market, about half of the remaining gap in demand. While inventories are close to their pre-COVID-19 levels, there is still uncertainty. The resolution of the pandemic is in sight, but timing is unclear. Vaccine distribution in the US is having an impact but Europe is struggling to contain a third wave of infections. The taps have opened on economic stimulus, but it remains to be seen if policymakers have done enough or if they have overshot the mark.
The shape of the crude oil forward curve has fundamentally changed since the end of the last quarter. In late December of last year, the Brent forward curve was gradually increasing while today, the curve is backwardated. This is a clear sign that the market sees a short-term dynamic that is disconnected from the medium-to-long-term fundamentals. The lasting impact of the COVID-19 pandemic remains to be seen. While many have opined that COVID-19 marks a turning point in energy transition, the IEA recently released a five-year forecast of oil demand that shows steady growth, albeit at rates that are below historical expectations.
Gas markets are a paradox. At the Henry Hub and at LNG destinations, demand grows, investment lags and prices will occasionally attract attention. Traders, so far though, are unconvinced and futures prices don’t indicate imminent scarcity at any link in the value chain.
EY Price Point: global oil and gas market outlookEY
We enter 2021 on a note of cautious optimism for global health, the world economy, and the oil and gas markets. The first weeks of December brought approval in the US and the UK of the first of several COVID-19 vaccines. The speed with which vaccine development occurred is unprecedented, but certainly welcome. In the weeks following the early November announcement of 90+% effectiveness by the manufacturer of the first approved vaccine, the price of WTI crude oil increased by US$10/bbl to US$48/bbl, the highest level since early March. Sustainability hasn’t returned yet, and whatever time it takes to get the world to normal, it will take even longer for normalization within the oil and gas markets. Inventories remain at historically high levels and, optimistically, it will take until April before inventory returns to levels observed in the preceding five years. That’s an estimate, and there has obviously been some difficulty properly calibrating the expectations of how balance will return and how long it will take. In late November, OPEC met to adjust its output plans because of the anemic rebound in demand. In mid-December, the IEA lowered its demand forecast for 2021 due mostly to continued sluggishness in aviation fuel demand.
A mild winter has interrupted a recovery in North American natural gas prices after a run-up motivated by curtailed capital expenditures, upstream activity and production. After an initial meltdown, with cargo cancellations and dramatic price reversal, LNG markets have made a remarkable comeback, and the spread between Asia and Henry Hub has reached a level we haven’t seen in almost three years. It may be the case that interruption in FIDs has brought us to the cusp of a balance that can support reliable returns.
EY Price Point: global oil and gas market outlook (Q4, October 2020)EY
Oil and gas prices have recovered steadily from their lows and are relatively stable, but that stability is supported by the combination of purposeful withholding of production by oil-producing countries and economic stress on upstream independents. Oil prices closed the quarter roughly where they started it, while refining spreads were down slightly. LNG spreads were substantially higher at the end of Q3 than they were at the beginning of the quarter but are still roughly half of what is generally thought of as sustainable.
Going forward, the market will be looking closely at how the economy and demand respond to new developments with respect to a potential COVID-19 vaccine and the US election.
EY Price Point: global oil and gas market outlookEY
As we close the second quarter of 2020, in most of Europe and Asia, the first (and hopefully last) wave of the COVID-19 crisis appears to be abating. In the parts of the US where the virus hit early, the profile has largely matched Europe’s, while in other parts, the urge to reopen businesses has trumped the desire to contain the virus and uncertainty looms. In the developing world, the crisis has just begun, but without the economic headroom and resources necessary to contain it. As the crisis unfolded, the effect on oil and gas demand has been predictable but difficult to gauge precisely and therefore difficult to manage.
Oil prices have crept up steadily as production has been curtailed through coordinated action (OPEC+) and because of economic reality (unconventional oil in North America). That trend has been subject to momentary spasms when bad news hit the market. It would be understandable if traders were nervous, and it seems that they are. Although nowhere near where it was at the peak of the crisis, option implied volatility is still at historically high levels. Gas markets, without the benefit of coordination on the supply side, continue to deal with the market implications of storage at or near capacity. Interfuel competition in power generation has always provided something of a floor, but those lows have been, and will continue to be, tested.
Zahl der Gewinnwarnungen steigt auf RekordniveauEY
Immer mehr deutsche börsennotierte Unternehmen müssen ihre eigenen Umsatz- oder Gewinnprognosen nach unten korrigieren. Im ersten Quartal stieg die Zahl der Prognosekorrekturen auf ein neues Rekordniveau: Insgesamt 77 Gewinn- oder Umsatzwarnungen wurden registriert.
Die Corona-Krise trifft auch die Versicherungsbranche mit voller Wucht. Die Versicherer rechnen mit weniger Neugeschäft. Jeder Fünfte mit Personalabbau und Prämienerhöhungen.
Liquidity for advanced manufacturing and automotive sectors in the face of Co...EY
The document discusses the impacts of COVID-19 on the liquidity and cash management of advanced manufacturing and mobility companies. It notes that companies are searching for short-term solutions to issues securing liquidity to fund operations as the global economy falls due to actions taken in response to the pandemic. It provides an overview of various challenges companies may face, such as cash shortages, credit squeezes, supply chain disruptions, and reduced access to capital. The document also outlines some measures companies can take to enhance short-term liquidity.
IBOR transition: Opportunities and challenges for the asset management industryEY
This document provides an agenda and overview of a webinar discussing the IBOR transition for the asset management industry. The webinar covers topics such as the progress of the transition, impact on asset managers and products, perspectives from European central banking working groups, and how firms are migrating. It introduces the speakers and their topics. In addition, it provides background on the drivers for IBOR reform, timeline of key milestones, and summaries of transition progress for different jurisdictions.
Fusionen und Übernahmen dürften nach der Krise zunehmenEY
Folgt auf die Corona-Krise ein M&A-Boom? Laut Capital Confidence Barometer von #EY hoffen 40 Prozent der deutschen Unternehmen auf sinkende Bewertungen von Übernahmekandidaten.
EY Price Point: global oil and gas market outlook, Q2, April 2020EY
The first quarter of this year has seen some extraordinary events. As if chronic oversupply, prices stuck below sustainable levels, the looming energy transition, and investor pressure to decarbonize weren’t enough, our industry now faces a dramatic, but hopefully temporary, downturn in demand as a result of the ongoing COVID-19 outbreak.
Our Global Chemical Industry Leader Frank Jenner explores the trends and drivers that will shape the chemical industry of tomorrow in our latest Chemical Market Outlook.
Die Geschäftslage im Mittelstand hat sich leicht verschlechtert, ist in den meisten Branchen aber weiter überwiegend gut - die Einstellungsbereitschaft sinkt.
Discover the Beauty and Functionality of The Expert Remodeling Serviceobriengroupinc04
Unlock your kitchen's true potential with expert remodeling services from O'Brien Group Inc. Transform your space into a functional, modern, and luxurious haven with their experienced professionals. From layout reconfiguration to high-end upgrades, they deliver stunning results tailored to your style and needs. Visit obriengroupinc.com to elevate your kitchen's beauty and functionality today.
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...my Pandit
Explore the fascinating world of the Gemini Zodiac Sign. Discover the unique personality traits, key dates, and horoscope insights of Gemini individuals. Learn how their sociable, communicative nature and boundless curiosity make them the dynamic explorers of the zodiac. Dive into the duality of the Gemini sign and understand their intellectual and adventurous spirit.
The Steadfast and Reliable Bull: Taurus Zodiac Signmy Pandit
Explore the steadfast and reliable nature of the Taurus Zodiac Sign. Discover the personality traits, key dates, and horoscope insights that define the determined and practical Taurus, and learn how their grounded nature makes them the anchor of the zodiac.
𝐔𝐧𝐯𝐞𝐢𝐥 𝐭𝐡𝐞 𝐅𝐮𝐭𝐮𝐫𝐞 𝐨𝐟 𝐄𝐧𝐞𝐫𝐠𝐲 𝐄𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐜𝐲 𝐰𝐢𝐭𝐡 𝐍𝐄𝐖𝐍𝐓𝐈𝐃𝐄’𝐬 𝐋𝐚𝐭𝐞𝐬𝐭 𝐎𝐟𝐟𝐞𝐫𝐢𝐧𝐠𝐬
Explore the details in our newly released product manual, which showcases NEWNTIDE's advanced heat pump technologies. Delve into our energy-efficient and eco-friendly solutions tailored for diverse global markets.
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....Lacey Max
“After being the most listed dog breed in the United States for 31
years in a row, the Labrador Retriever has dropped to second place
in the American Kennel Club's annual survey of the country's most
popular canines. The French Bulldog is the new top dog in the
United States as of 2022. The stylish puppy has ascended the
rankings in rapid time despite having health concerns and limited
color choices.”
Prescriptive analytics BA4206 Anna University PPTFreelance
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The Most Inspiring Entrepreneurs to Follow in 2024.pdfthesiliconleaders
In a world where the potential of youth innovation remains vastly untouched, there emerges a guiding light in the form of Norm Goldstein, the Founder and CEO of EduNetwork Partners. His dedication to this cause has earned him recognition as a Congressional Leadership Award recipient.
During the budget session of 2024-25, the finance minister, Nirmala Sitharaman, introduced the “solar Rooftop scheme,” also known as “PM Surya Ghar Muft Bijli Yojana.” It is a subsidy offered to those who wish to put up solar panels in their homes using domestic power systems. Additionally, adopting photovoltaic technology at home allows you to lower your monthly electricity expenses. Today in this blog we will talk all about what is the PM Surya Ghar Muft Bijli Yojana. How does it work? Who is eligible for this yojana and all the other things related to this scheme?
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Tastemy Pandit
Know what your zodiac sign says about your taste in food! Explore how the 12 zodiac signs influence your culinary preferences with insights from MyPandit. Dive into astrology and flavors!
IMPACT Silver is a pure silver zinc producer with over $260 million in revenue since 2008 and a large 100% owned 210km Mexico land package - 2024 catalysts includes new 14% grade zinc Plomosas mine and 20,000m of fully funded exploration drilling.
The Genesis of BriansClub.cm Famous Dark WEb PlatformSabaaSudozai
BriansClub.cm, a famous platform on the dark web, has become one of the most infamous carding marketplaces, specializing in the sale of stolen credit card data.
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India fraud indicator 2012
1. t
India Fraud Indicator 2012
Increasing magnitude of fraud
A study by Ernst & Young’s
Fraud Investigation & Dispute Services
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2. India Fraud Indicator 2012 | 2
About the
India Fraud Indicator
This edition of our India Fraud Indicator consolidates
articles on fraud published in the media in 2011–12
(1 April 2011–31 March 2012). A thorough research,
using various databases, was conducted to shortlist articles
pertaining to fraud that took place in the automobile,
consumer product, financial services, life sciences, media
and entertainment, real estate, retail and wholesale,
technology, telecommunications, health care, chemicals,
transportation and logistics, food and beverage, clothing and
textile, machinery, industrial internet and online services,
pharmaceuticals and diversified industries segments. A total
of 1,80,000 articles were screened to shortlist 204 fraud-
related cases in FY12.
There are however some limitations in this approach.
• ► The cases included in the analysis pertain to incidents
reported by the media in 2011–12. These incidents may
have occurred at a time earlier than this period.
• It is only an estimation of the real size of the problem.
• ► Some of these cases are under investigation and are
pending judgment. The outcome of the judgment may or
may not confirm the allegations and ascertain the actual
quantum of loss due to fraud.
Contents
Foreword Executive summary Increasing magnitude of fraud Who are the victims? Meet the perpetrators Where is fraud occuring? Concluding thoughts
Foreword
Executive summary
Increasing magnitude of fraud
Who are the victims?
Meet the perpetrators
Where is fraud occuring?
Concluding thoughts
Previous / Next
3. India Fraud Indicator 2012 | 3
This is the first edition of India Fraud Indicator from Ernst & Young India. It elaborates on
fraud in all spheres of society, including the business and government segments, as well
as in the case of financial institutions and individuals during 2011–12.
This report looks into potential losses (amounting to around INR66 billion) suffered by the
Indian economy due to fraud.* It showcases an increase in the magnitude of fraud in the
country in the second half (2H) of 2011 –12, with the value of such incidences rising by
36% over the first half (1H) of the year and the number of fraud cases rising by 8%.
The report also highlights the growing vulnerability of financial services, and more
specifically, the banking sector, to fraud. (Ernst & Young India Fraud Survey 20121
showcased the high exposure of the banking sector to fraud).
Furthermore, it will draw your attention to some interesting fraud enablers, including
identity and cyber fraud, and most importantly, insider-enabled fraud, which account for
61% of all reported fraud cases.
The key to identifying fraud lies in the ability to comprehend what lies beneath. This is
especially true of cyber fraud, where it is difficult to identify the perpetrator (s) with
certainty and establish an offense. This is where new forensic technology can help
governments, regulatory bodies and corporate organizations counter the increasingly
complex nature of fraud.
We hope you gain some useful insights from this report and that it helps you become
aware of and understand the various types of fraud that can impact your business.
* The impact of the telecom (2G) scam on the Government is not part of this report.
1 Fraud and corporate governance: changing paradigm in India, a report based on India Fraud Survey 2012,
Ernst & Young, 2012.
ForewordArpinder Singh
Partner and National Director
Fraud Investigation & Dispute Services
Ernst & Young Pvt. Ltd.
Executive summary Increasing magnitude of fraud Who are the victims? Meet the perpetrators Where is fraud occuring? Concluding thoughts
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Foreword
4. India Fraud Indicator 2012 | 4
The latest analysis of Ernst & Young’s India Fraud
Indicator indicates that businesses are constantly
exposed to fraud risk. The losses suffered due to fraud,
recorded in this report, amount to INR66 billion. Delhi
witnessed the largest number of fraud cases and
suffered the highest aggregate losses by fraud (as
compared to the rest of the country) in 2011–12.
Financial services the worst hit
• ► The financial services sector was the worst hit, with
more than 63% of the total fraud cases reported in
2011–12, followed by technology and transportation.
• ► In the financial services sector, banking was the
major victim with 84% of the total number of
reported fraud cases.
According to the data compiled by the Reserve Bank of
India (RBI), the money lost by banks due to scams and
fraud has doubled in the past four years. Losses incurred
by banks due to fraud increased by 88% in 2010-11
to exceed INR37.9 billion (more than INR20.1 billion in
2009–10).
India’s banking sector is also reeling under the
threat of mounting non-performing assets (NPAs)
that rose by 46% to INR1.37 trillion in fiscal 20123
.
Several cases, involving irregularities in lending to the
infrastructure and telecom sector, have come to light
over the last couple of years.
2 “CBI registers bank fraud cases worth Rs 2,500 cr in 2012”, Statesman website, http://www.statetimes.in/news/cbi-registers-bank-fraud-cases-worth-rs-2500-cr-2012/ , accessed 11 September 2012.
3 “Fear grips public sector banks”, Livemint website, http://livemint.com/Industry/DI2lX6zPWfBcl7pkFuzEPM/Fear-psychosis-grips-public-sector-banks.html , accessed 11 September 2012.
Executive summary
The Central Bureau of Investigation’s (CBI’s) Bank
Securities and Fraud Cell registered criminal cases
amounting to a total of INR40 billion in 2011, while
fraud cases worth INR25 billion have already been
registered from January to July 20122.
Increasing
incidents of fraud indicate that there is an urgent need
for banks to have an enhanced system of checks and
balances.
Executive summary Increasing magnitude of fraud Who are the victims? Meet the perpetrators Where is fraud occuring? Concluding thoughts
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5. India Fraud Indicator 2012 | 5
Who is committing fraud?
• It has been observed that fraud is generally
committed by young people below the age of
35 to support their lavish lifestyles, which are not
commensurate with their incomes. (The India Fraud
Survey 2012 reportstated, “A typical fraudster is an
internal male employee, who is in his 30s, is far from
the age of retirement and is an average performer in
middle management.”)
• Internal employees at various management levels
were involved in 61% of reported fraud cases.
• According to our study, senior management
members of companies are involved in 23% of fraud
cases in the country. However, our study reveals
that they are involved in 79% of major fraud cases
by value (with each of these amounting to more
than INR100 million) due to their positions and
their ability to directly influence their companies’
decisions. (According to the India Fraud Survey 2012
report, “Fraud committed by senior management
ranks among the top five fraud risks to which
organizations are exposed.”)
• ► Cases of identity theft involving external parties
are increasing, whereby a fraudster uses forged or
stolen documents to commit fraud.
Fraud against investors
In this report, we elaborate on the fact that investors
are the most adversely impacted by fraud, and the total
value of fraud committed against them exceeds INR27
billion. The greed to earn high returns in a short time
makes investors vulnerable to scams. In April 2011,
the police unearthed a major fraud against a multi-level
marketing company (MLM), which described itself as
the country’s “premier financial consultancy” firm and
defrauded investors of INR10 billion by promising a
high return of 20% a month to them. Several other MLM
companies are alleged to have defrauded investors of
millions of rupees over the past few years.
Around 58% of fraud was committed by
people below the age of 35*.
* Age of fraudster was not available for all the cases.
4 “Government constitutes committee to frame laws for direct and network marketing”, The Economic Times website, http://articles.economictimes.indiatimes.
com/2012-07-21/news/32776703_1_idsa-chavi-hemanth-money-circulation-schemes , accessed 11 September 2012.
The Government constituted a seven-member inter-
ministerial committee, headed by a Consumer Affairs
Secretary, in July 2012 to frame legislation and rules
for unregulated direct selling and network marketing
businesses. The committee is looking at framing
guidelines for these companies, based on legislation
implemented by Kerala, the first state in India to put in
place regulations for MLM companies4
.
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6. India Fraud Indicator 2012 | 6
Increasing magnitude of fraud
The total number of fraud cases reported in
2H 2011–12 increased by around 8% over
1H, but their value grew by 36% during the
same period.
The financial services sector, including banking,
insurance and Non-banking Financial Companies
(NBFCs), was the most vulnerable to fraud and accounted
for 63% of the total number of fraudulent incidents that
occurred during the year. Within the financial sector,
banks were the most common victims of fraud, followed
by insurance and mutual fund companies.
Table 1: Cases by fraud value (INR) — 2011-12
Value Number of cases
1H 2H
1 or less than 1 million 18 14
1.01 to 10 million 35 36
10.01 to 100 million 20 24
100.01 million and above 8 20
Total amount Involved (In INR billions) 27.9 38.1
The total number of cases does not add up to 204, since the value of
fraud was not available in some cases.
Figure 1: Fraud cases by sector classification,
2011-12
1H12 (Total cases = 98)
2H12 (Total cases = 106)
Banking
Banking
Insurance
& NBFC*
Insurance
& NBFC*
Technology
Real Estate
Transport
Transport
Healthcare
Telecom
Telecom
Technology
Consumer Goods
Healthcare
Real Estate
Consumer Goods
Others
Others
56%
7%
9%
6%
4%
4%
4%
3%
7%
51%
12%
5%
6%
5%
4%
4%
4%
9%
*NBFC refers to non-banking financial
institutions including mutual fund companies.
Banking — the main targeted
segment
The banking segment witnessed around 84% of reported
fraud cases within the financial services sector, with a
high percentage (41%) of asset or loan fraud. Forged
documentation was the primary mode of fraud committed
in the banking segment.
“Fraudulent documentation, multiple
funding, overvaluation/non-existence of
collaterals and siphoning of funds are
some of the areas in which banks have
witnessed major incidents of fraud.”
Executive summary Increasing magnitude of fraud Who are the victims? Meet the perpetrators Where is fraud occuring? Concluding thoughts
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7. India Fraud Indicator 2012 | 7
A fraudster can easily obtain your personal account details from
gullible courier boys, who carry credit card/account details and then
use these to change official contact information such as a mail/
email address or add another user to your account. This is known as
account takeover fraud.
Did you
know? Case study
A case took place in Kolkata, where the agency
executive (in charge of collecting documents)
would share the personal details (card
numbers, last few transactions, address and
date of birth) of customers with the bank as
well as the fraudster. The fraudster would use
these details to generate a One-time Telephone
Pin (TPIN). Using the details, he would call up
the bank’s customer care division to request a
change of address and register a new mobile
number. He would again call to freeze the
current credit/debit card and request a new
one at the changed address. Using the new
card, the fraudster would shop across the city,
causing losses running into huge amounts for
the card owners.
There were several significant features in this
case.
• ► It was fairly easy for the fraudster to
persuade the agency executive and courier
delivery boys to share details with him.
• ► He used the jewelry brought through
a customer’s credit card to avail a loan
against the jewelry using the customer’s
forged documents.
• ► He was able to apply for a personal loan
(an innovation developed by banks to offer
easy loans to preferred customers with a
good credit history) of INR1 million and
also opened a bank account using fake
documents.
Source: “Rs 34L credit card fraud busted”, The Times of India website, accessed 16 September 2012.
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8. India Fraud Indicator 2012 | 8
Who are the victims?
As observed in our sector-wise analysis,
financial institutions are the principal victims
of fraud (by number of cases), followed by
customers and commercial businesses.
Table 2: Fraud by victims — 2011–12
Number of cases Value of fraud (INR billion)
Victim 1H 2H Indicator 1H 2H Indicator
Financial institutions 31 44 1.2 8.1
Customer 26 25 14.1 0.3
Commercial businesses 11 8 0.1 0.1
Investors 7 7 12.3 14.8
Government 2 10 0.1 14.4
Others 21 12 0.1 0.4
Value rounded off to one decimal place Increasing Decreasing No change
Some interesting trends emerged while looking at
fraud against financial institutions in 2011–12:
• ► Financial sector entities continue to be targeted,
mainly by internal fraudsters. Around 60% of fraud
against financial institutions was committed by
employees at various levels within the organization,
26% by customers, and the remaining by former
employees and external parties including employees
of outsourced organizations.
• ► Employees of outsourced companies, including
the ones responsible for loading cash in ATMs and
security guards, are increasingly getting involved in
ATM fraud.
Investors suffered the highest fraud losses (amounting
to more than INR27 billion) in 2011–12, followed
by the Government, which incurred a total loss
of around INR14 billion. Fraud targeting investors
primarily included investment fraud (INR14.2 billion),
where private companies duped millions of investors by
promising them high returns on their investments. The
bulk of fraud committed against the Government included
tax evasion cases.
The CBI is developing a Bank Case
Information System (BCIS), which will
include the names of bank fraudsters.
The database will be made accessible
to field functionaries in the banking
sector and will help banks keep a
check on fraud committed by existing
fraudsters.
4 “RBI frames rules to prevent fraud; wants vigilance officers in banks”, Livemint
website, http://m.livemint.com/Politics/A908ubyZThTGQMXc7j5OYP/RBI-frames-
rules-to-prevent-fraud-wants-vigilance-officers.html , accessed 11 September
2012.
The RBI constantly issues new guidelines for banks.
These are aimed at preventing fraud. Some of the
recent initiatives of the RBI include4
:
• ► In 2011, it asked banks to frame staff rotation and
mandatory leave policies for employees in sensitive
areas such as the treasury and for relationship
managers handling high-value clients.
• ► It has also directed private and foreign banks to
appoint Chief Internal Vigilance (CIV) officers, with
responsibilities similar to those of Chief Vigilance
Officers in public sector banks.
Executive summary Increasing magnitude of fraud Who are the victims? Meet the perpetrators Where is fraud occuring? Concluding thoughts
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9. India Fraud Indicator 2012 | 9
Meet the perpetrators
According to the India Fraud Indicator,
61% of fraud cases committed against
businesses are “inside jobs” committed by
the employees of organizations.
Figure 2: Fraud by perpetrator — 2011-12
Involvement of employees: Fraud involving employees
increased from 50% in 1H to 71% in 2H 2011-12.
Middle to low-level employees accounted for 38%
of total fraud cases in 2011–12, mainly due to their
involvement in the daily operations of the organizations
in which they worked. On the other hand, senior
management was only involved in 23% of reported
fraud cases. However, due to their authority and direct
access to funds, senior management members were
involved in 79% of fraud cases, each of whose value
amounted to more than INR100 million.
External parties: This comprises the second-largest
perpetrator group among which 23% of fraud cases
12
9
27
20
48
8
20
19
26
30
0 10 20 30 40 50 60
Others
Customers
Senior management
External party
Internal employees
Number of fraud cases1H
2H
The total number of fraudsters exceeds total cases,
since more than one party is involved in some cases.
were reported during the year. Fraud involving external
parties generally include cases of identity theft, where
the fraudster uses forged or stolen documents to assume
someone else’s identity, typically to access resources or
obtain credit and other benefits in that person’s name.
Out of the 45 cases involving external parties, the
fraudsters committed identity theft in almost 46% of
them.
Another area of concern relates to the number of
fraudulent incidents involving collusion between external
parties (including customers) and internal employees.
Out of the 25 cases, in which collusive behavior was
observed, 21 involved financial institutions and 60% of
these included asset or loan fraud.
Gender: Although gender has nothing to do with ability
to commit fraud, according to this edition of the India
Fraud Indicator, the majority (74%) of fraudulent incidents
were planned and executed by men. Women were mainly
involved in fraud against banks.
Table 3: Cases by gender — 2011-12
Gender Number of cases in
1H
Number of cases in
2H
Male 74 77
Female 3 3
Both male and
female
11 10
The total number of cases does not add up to 204, since the required
data was not available for some cases.
Recruitment and lottery scams are becoming
increasingly common, with fraudsters posing as
representatives of reputed multinationals to dupe
people by offering them jobs in a company or money
purportedly won by them in a company’s promotional
events or lottery. Companies generally issue warnings on
their websites and in newspapers, stating that they are
in no way associated with these emails, text messages,
unauthorized websites or programs offering jobs and
money.
• ► Such emails generally come from a free, public domain
email account (e.g., gmail.com or hotmail.com).
• ► They make a request for a cash deposit in a bank account
or payment in some other form.
• ► There is improper use of a company’s trademark.
• ► If the email begins with “Dear sir” or “Dear user,” this
implies that its sender does not know the recipient’s name.
How to identify fake email job
offers and lottery scams?
Out of the 204 cases of fraud
reported in 2011–12, the police was
able to catch the fraudsters in nearly
66% of the cases, while in another 8%
FIRs were lodged against the suspect.
Executive summary Increasing magnitude of fraud Who are the victims? Meet the perpetrators Where is fraud occuring? Concluding thoughts
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10. India Fraud Indicator 2012 | 10
Delhi witnessed the largest number of fraud
cases and suffered the highest aggregate
losses by fraud (as compared to the rest of
the country) in 2011–12.*
The spread of fraud across India has been consistent,
with fraudulent incidences being reported in 24 out
of 29 states (including Delhi). Although tier II cities
accounted for around 53% of total fraud cases, their
value was higher in tier I cities and accounted for 87%
of the total fraud value in 2011–12.
74% of the cases reported in tier II cities took place in the
financial services sector. Employees in these cities are
more likely to commit fraud, since they are away from the
direct control of management and are less likely to follow
stringent auditing procedures on a regular basis.
Figure 3: Fraud cases by city/type — 2011–12
Tier I45%
Tier II 55%
1H (Total cases = 98)
Tier I49%
Tier II 51%
2H (Total cases = 106)
Table 4: Fraud by state — 2011-12
Number of cases Value of fraud (INR billion)
Victim 1H 2H Indicator 1H 2H Indicator
Delhi* 15 26 17.2 15.9
Maharashtra 18 13 7.8 3.8
Andhra Pradesh 15 12 0.1 13.9
Gujarat 7 8 1.5 0.7
Tamil Nadu 8 5 0.1 0.1
Karnataka 6 5 0.1 0.1
Others 29 37 1.1 3.6
The fraud value was not available for all the cases. *Cases in the NCR have not
been included while calculating the total number of cases in Delhi.
Value rounded off to one decimal place Increasing Decreasing No
change
Where is fraud occuring?
* It is only an estimation based on the articles on fraud published in the media (1 April 2011–31 March 2012)
Executive summary Increasing magnitude of fraud Who are the victims? Meet the perpetrators Where is fraud occuring? Concluding thoughts
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11. India Fraud Indicator 2012 | 11
How can companies mitigate
their risks in this scenario?
While it is not possible for organizations to operate
in a zero fraud environment, proactive steps such
as conducting risk assessments of procedures and
policies can help them hedge their risk of contingent
losses due to fraud.
The importance of regularly assessing and reviewing
systems and processes for fraud risk cannot be
emphasized enough. Just as in a fire safety exercise,
where you constantly assess your premises, systems
and equipment, and conduct regular drills, a fraud
risk assessment will help you to recurrently review
your policies and built-in checks, and use advanced
technology to mitigate the fraud risk in your
organization.
Proactive forensic data analysis: technological
defense against new-age fraud
Some techniques such as data visualization have
proved to be effective, since humans can absorb
larger pieces of information when this is presented
in a visual format rather than when it is displayed
in plain numbers or text. A large amount of useful
and “not so apparent” information related to a
fraud scenario can be reviewed at one go by this
technique. Fuzzy logic is another technique, which
can be used on the data records of a company, e.g.,
the Employee Master, Vendor Master and Customer
Master. These, clubbed with a social network
analysis, can indicate possible threat of collusion.
Progressive reviews of unstructured data can help
organizations analyze the sentiments, tones and
elements described in the fraud triangle (incentive,
pressure and rationalization). This, together with
unsupervised pattern recognition, can proactively
help them to put in place fraud parameters.
Although a company cannot be 100% secure against
unknown threats, a certain level of preparedness
can go a long way in countering fraud risk. It
can limit damages and protect the reputation of
organizations.
A careful study of the latest fraud cases in India suggests:
• Banks the most vulnerable: Increasing cases of fraud
against banks is a worrying sign for organizations and the
regulator.
• Difficult to detect collusion: Another point of concern
is the increasing collusion between the employees of
organizations and external parties. Collusion can be
difficult to detect, and this makes it easier for external
parties to steal large amounts quickly.
• Need for investors to be vigilant: The large value of
fraud committed against investors is alarming. Although
the regulator is constantly mandating regulations to
safeguard investors, it is an investor’s duty to closely
screen advisers and companies offering abnormally high
returns.
• Reputational loss to companies due to recruitment
scams: This report also emphasizes the increasing use
of companies’ identities/names in recruitment fraud
and lottery scams. While the companies cannot be held
responsible for such incidents, this certainly besmirches
their reputation.
Concluding
thoughts This information is intended to only provide a general outline of the subjects covered. It should neither be regarded as comprehensive nor sufficient for making
decisions, nor should it be used in place of professional advice.
Executive summary Increasing magnitude of fraud Who are the victims? Meet the perpetrators Where is fraud occuring? Concluding thoughts
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12. India Fraud Indicator 2012 | 12
About Ernst & Young’s Fraud Investigation & Dispute Services
Dealing with complex issues of fraud, regulatory compliance and business disputes can detract from efforts to achieve your company’s
potential. Better management of fraud risk and compliance exposure is a critical business priority — no matter the industry sector. With
our more than 1,500 fraud investigation and dispute professionals around the world, we assemble the right multidisciplinary and culturally
aligned team to work with you and your legal advisors. And we work to give you the benefit of our broad sector experience, our deep subject
matter knowledge and the latest insights from our work worldwide. It’s how Ernst & Young makes a difference.
FIDS India
• Deep competencies: Our FIDS team has specific domain
knowledge, along with wide industry experience
• Forensic technology: We use sophisticated tools and
established forensic techniques to provide the requisite
services to address individual client challenges.
• Global exposure: Our team members have been trained
on international engagements to obtain global exposure
on fraud scenarios.
• Market intelligence: We have dedicated field
professionals, who are specifically experienced and
trained in corporate intelligence, and are capable
of conducting extensive market intelligence and
background studies on various subjects, industries,
companies and people.
• Thought leadership: We serve a variety of leading
clients, which gives us a deep insight into a wide range of
issues affecting our clients and business globally.
• Qualified professionals: We have a qualified and
experienced mix of chartered accountants, certified
fraud examiners, lawyers, CIAs, CISAs, engineers, MBAs
and computer forensic professionals.
Our services
• Anti-fraud and fraud risk assessment
• Fraud investigation
• Dispute advisory services
• Forensic technology and discovery services
• Regulatory compliance
• Brand protection and IP risk
• Forensic business intelligence
• Anti-bribery program
• Third-party due diligence/Vendor due diligence.
• Anti-bribery program
• Third-party due diligence/Vendor due diligence.
Contact us
Arpinder Singh
Partner and National Director
Direct: +91 22 6192 0160
Email: arpinder.singh@in.ey.com
Sandeep Baldava
Partner
Direct: +91 40 6736 2121
Email: sandeep.baldava@in.ey.com
Vivek Aggarwal
Partner
Direct: +91 12 4464 4551
Email: vivek.aggarwal@in.ey.com
Executive summary Increasing magnitude of fraud Who are the victims? Meet the perpetrators Where is fraud occuring? Concluding thoughts
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