Profiles of a Fraudster: KPMG report throws light on danger lurking in Indian organisations

There’s a shadow that lurks in Indian organisations. It blends in nicely but systematically drills a hole in the company’s finances.

Unmask it, and this is what it’s typically like: Male, 36-45 years of age, extrovert, respected in his role. Has been with the organisation for 1-4 years and is employed at the staff or managerial leve l. Possibly an engineer and plays a role in operations or procurement.

This, according to ‘Profiles of a Fraudster’, a KPMG International report, is the most prevalent profile of a fraudster.

At least 29 of the 596 fraudsters across 78 countries analysed for this study were from India. “Fraud is becoming more sophisticated and one major change is the growing use of technology and access to much more information than previous generations,” says Sandeep Dhupia, head – forensic, KPMG India, in the report.

A strong technology enabled platform to provide early warning signs; adoption of an ethical code of conduct amongst employees and stakeholders; technology-driven controls and a robust whistleblower mechanism are some ways in which organisations can mitigate the risk of fraud, says the report. ET brings you some of the findings:

India Findings

1. The fraud is mainly in the nature of misappropriation of funds in collaboration with people outside.

2. Increase in performance pressure and a tough economy were triggers.



Global Findings
Main Motives