India might be losing USD 40 bn to employee frauds: IFR survey

Bangalore, Mar 14 (PTI) India might be losing as much as USD 40 billion annually due to frauds committed by employees, according to a survey by India Forensic Research, a firm engaged in fraud examination and forensic accounting in India.”Insider collusion is one of the biggest reasons of fraud and corporates lose more amount to the shenanigans of their own employees than frauds committed by an external party,” said Mayur Joshi, Chairman, India Forensic Consultancy Services.Banking sector is the one which is most affected by employee frauds, accounting for 20-24 per cent followed by Insurance sector (around 16 per cent), he said, responding to queries on the sidelines of a one-day conference on ’employee frauds’ here today.

Referring to fake documents and certificates submitted by employees, Joshi said, “around 17-23 per cent of CVs are being faked in India.”

He said the employee frauds could be detected and divided into two categories; one who are first time offenders and the second who are perpetual offenders.

In case of first time offenders, a software tool is employed to do a complete profiling wherein the behavioural pattern of the employee is traced and even the data which is deleted by the employee is recovered.

In case of embezzlements, a data analysis tool is used which throws up exceptional reports.