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| Theft/ Fraud/ Pilferage/ Investigations |
A recent KPMG survey has revealed that:
"In 89% of the profiles (of a typical fraudster), the fraudsters committed fraudulent acts against their own employers."
"Interestingly, the tenure of employment does not have a positive influence, rather the contrary-more than 50% of offenders have been with their company for more than six years."
"In 91% of profiles, perpetrators were not content with one fraudulent act but acted multiple times, often over a period of several years."
"The survey also shows that 2/3rd of all primary internal perpetrators are members of the top management."
For the Indian context, the survey stated that "organizations in India that remain passive in their approach to deal with fraud may be a perfect breeding ground for fraud."
In India, the inadequacy of adequate internal controls and the unethical attitude of employees creates a very conducive condition for both the opportunity and the motive to exist to commit a fraud.
Be it the IT sector, the Reality sector or Buying Houses, fraud/theft/pilferage affects the entire spectrum of the Indian industry. The only two constants in this scenario are the profile of the fraudster and the loss that he causes to the Company. To commit a fraud three factors need to be present namely,
Motive
Opportunity
Rationale
A fraudster not only has to have the motive, he also needs the opportunity to commit a fraud and to do so he has already convinced himself with a 'well-justified logic' to do so.
Frauds normally occur due to weak internal controls. This lack of internal controls can cause a loss which could take the shape of misappropriation of funds, but can also have serious long-term ramifications if sensitive and confidential information to which these executives are privy to, are 'leaked' to competitors.
Collusion between the vendors and company executives is a very common abuse of power and position for mutual benefit, that is detrimental to the interests of the company. Once an employee is able to identify the weakness in the internal controls he may act alone or connive with other colleagues in causing pecuniary loss to the company. In some instances, colleagues may not connive but could surely be guilty of abetment. |
Major forms of workplace frauds:
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INA, once given the mandate, investigates white collar crimes and theft & pilferage cases by first identifying the issues at hand and then putting into action a covert modus operandi that could range from undercover operations to discreet enquiries backed up by surveillance operations. At times INA also uses its experienced investigators to conduct investigative type interviews in order to establish the truth. Thus, INA assists organizations in identifying the 'enemy within' so as to curtail losses to the company and to maintain employee morale. |
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