Corporate Fraud Rising
Fraud is growing ever more common across businesses, and the Economic Times Fraud & Investigation Summit 2015 discusses ways to nip it in the bud.
ET Edge, An Economic Times Initiative has always championed the cause of ethical practices, believing it plays a vital role in successful business, balanced societies and concomitantly robust national growth. Keeping this in mind, the Economic Times Fraud & Investigation Summit 2015 brings together senior policy makers and industry leaders to discuss various measures that organizations should cultivate in order to prevent losses from fraud.
The conference will focus on highlighting evolving financial and cyber trends and deliberate on necessary steps to ensure the future security of individuals, organizations and the nation as a whole. While the modus operandi of frauds have remained unchanged over the years, it has grown ever more sophisticated, sometimes even blindsiding victims blindsided. Through the 2nd edition of the Economic Times Fraud and Investigation Summit 2015, we hope to shine a light on these malpractices and help businesses protect their interests better.
The most remarkable, and scary thing, about Fraud is the rate at which it has evolved. While it is still common to see enterprises using the same approaches to security and fraud detection that they employed three to five years ago, while the level of sophistication in the world of fraud has evolved dramatically and outpaced it.
Fraud is the real F-word, and in most corporate circles to speak of it is taboo.Concomitantly, there's this lack of knowledge about the scale and impact of fraud amongst those that matter, which is wrong since it is essential to investigate and measure all aspects of fraud and report it to your stakeholders.
To think that fraud is restricted to the financial world is a misnomer, for it is like a many headed Hydra. Be it cybercrime, intellectual property theft, counterfeiting & piracy, accounting fraud, bribery and identity theft, fraud has manifested itself across diverse areas.
The lack of strong internal audit mechanisms along with sweeping powers awarded to the top management have resulted in corporate frauds in India. Perhaps most alarmingly, India Inc. continues to largely rely on outdated systems to combat the rising threat of bribery, corruption, the diversion or theft of funds and goods, and regulatory non-compliance. The failure to give credence to emerging fraud risks such as e-commerce, social media, virtual/crypto currency fraud or cloud computing is perhaps the most alarming factor.
Officials confirm that the leakage of company information, fraudulent use of credit cards and the diversion of payments to fraudulent accounts are key risks to online business, and yet little is done to mitigate such risks. Thestartling reliance on outdated or simplified fraud controls pose a serious risk to forward-looking businesses. Whistle-blower hotlines, IT controls and internal audit reviews to detect fraud can only take one so far.
About the Author
The author of this article is associated with Times Conferences Ltd., an organization that empowers industries and segments by sharing critical business knowledge through strategic conferences and summits. More details about the company by Click here
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