Over four in five (83%) respondents said their organizations had been significantly impacted by fraud and illicit activity.
85% respondents’ organisations had conducted investigations into fraud, corruption or related misconduct in the past three years.
Mumbai, NFAPost: Kroll, the leading provider of data, technology and insights related to risk, governance and growth, has revealed the results of its latest Global Fraud and Risk Report, highlighting that organisations around the world are dealing with the rising costs associated with investigating allegations of serious misconduct.
The report, based on a survey of over 1,330 senior decision-makers for risk strategy, including CEOs, general counsels, chief compliance officers and chief financial officers, reveals that the vast majority (83%) of respondents in India said their organizations had been significantly impacted by fraud, corruption, illicit activity, money laundering or other serious misconduct.
In response to the high reported rates of serious misconduct, 85% of surveyed organizations in India stated they had conducted internal investigations over the past three years.
Almost 85% that had conducted an internal investigation recruited the help of external firms to assist, with the most preferred advisors being accountancy firms (72%), computer forensics/eDiscovery firms (71%) and investigation firms (66%).
Despite advancements in technology and data analytics, 82% respondents in India said the cost of investigations had increased over the past three years.
Kroll’s research also shows the extent to which organisations believe that some firms offering investigative services are failing to deliver true value. Computer forensics services were identified as being the most expensive relative to their value by 26% of respondents, followed by forensic accounting (21%) and open-source research (21%).
This suggests that some external providers are not leveraging the most up-to-date tools and technology to efficiently find relevant information—the “smoking gun” email or transaction or significant anomalies—in massive volumes of structured and unstructured data.
Kroll Managing Director and Head of South Asia Forensic Investigations and Intelligence practice Tarun Bhatia said the incidence of fraud has been a matter of concern for organisations across the globe.
“Even though several organisations are implementing due diligence procedures internally to monitor fraudulent activities, the occurrence of fraud has not stopped altogether. Almost 50% of them have also stated that illicit activity, corruption and similar activities of misconduct have had a significant impact on their business,” said Kroll Managing Director and Head of South Asia Forensic Investigations and Intelligence practice Tarun Bhatia .
Tarun Bhatia said a large proportion of respondents in India (85%) have conducted investigations involving fraud, corruption or related misconduct in the past three years and this trend is expected to continue.
“With ongoing geopolitical turbulence and potentially challenging economic conditions, organizations must become more wary of fraud risks, and will need to take both proactive and corrective measures to curb them in order to reduce their impact in the future,” said Kroll Managing Director and Head of South Asia Forensic Investigations and Intelligence practice Tarun Bhatia.
About the research
For the Global Fraud and Risk Report 2021/22 edition, Kroll conducted an anonymous online survey of over 1,330 senior decision-makers for risk strategy, including CEOs, general counsels, chief compliance officers and chief financial officers. 60% of the organisations surveyed have annual revenues of $250 million or more, and 34% have annual revenues of more than $1 billion. Survey respondents were drawn from 17 countries and regions across Europe, North America, Middle East, sub-Saharan Africa and Asia Pacific.
About Kroll
Kroll provides proprietary data, technology and insights to help our clients stay ahead of complex demands related to risk, governance and growth. Our solutions deliver a powerful competitive advantage, enabling faster, smarter and more sustainable decisions. With 5,000 experts around the world, we create value and impact for our clients and communities.
