Corporate fraud incidents on the rise in India, says KPMG

Managing the risk of fraud is essentially no different to managing any other type of business risk !!

Almost 75 per cent of corporate India surveyed felt the overall incidence of fraud was rising, according to ‘India Fraud Survey Report 2010’ by KPMG.

The report also pointed out that e-commerce and computer-related frauds would be major concerns to companies in the coming years. The survey was conducted across 1,000 firms, both Indian business establishments and public institutions, with an annual turnover of Rs 500 crore to over Rs 10,000 crore.

Weak internal control systems, eroding ethical values and a reluctance on the part of the line managers to take decisive action against the perpetrators, are cited as the main reasons for fraud being on the rise.

* 63% say the desire to exceed market expectations is the main reason to commit financial fraud
* 81% say financial statement fraud is a major issue
* 41% say they do not have a formal fraud risk management framework
* e-commerce & computer-related fraud to be a source of major concern in the coming years
* 75% all fraudulent activities, except Intellectual Property (IP) fraud were perpetrated by employees

Among the types of fraud, the survey noted that 81 per cent viewed financial statement fraud as a major issue. Ineffective whistle-blowing systems, inadequate oversight of senior management activities by the audit committee and weak regulatory oversight mechanisms are the reasons for the growing worries, as well as the increase in the number of frauds.

Respondents, particularly from the financial services and consumer market industries, feel there is a higher level of fraudulent activities within their industry. The survey also indicated “procurement” and “sales and distribution” to be the most vulnerable areas across industries susceptible to fraud risk.

Close to 63 per cent of the surveyed firms said the desire to meet or exceed market expectations was the most significant reason to commit financial statement fraud. “The need of the hour is for organisations to realise the importance of putting effective internal control mechanisms in place, so as to manage risks. Accountability is no longer restricted to a company as a whole, but also streams down to each and every individual. It has become imperative for companies to be vigilant and aware, and not just act when fraudulent situations arise,” said Deepankar Sanwalka, head – forensic, KPMG in India.

India Inc also realises the value of these frauds. The survey indicated that the quantum of frauds increased manifold over KPMG’s 2008 fraud survey. About 87 per cent respondents said their organisation incurred fraud losses of more than Rs 10 lakh as against 47 per cent in the last survey.

Rohit Mahajan, executive director – forensic, KPMG in India, said, “Being a fast paced economy such as ours, fraud management is an extremely vital issue confronting us today. Managing the risk of fraud is essentially no different to managing any other type of business risk. All that it requires is resilience to combat that fraud.”

However, the positive finding of the report was that there is a greater realisation to avoid fraud. Compared to the 2008 fraud survey, in which only 27 per cent of the respondent organisations had adopted proactive data analytics for analysing e-data, this year’s survey indicated that: while over 42 per cent have implemented proactive data analytics in various streams in the organisation, over 22 per cent have partially implemented it.

Courtesy: Business Standard.

* 63% say the desire to exceed market expectations is the main reason to commit financial fraud
* 81% say financial statement fraud is a major issue
* 41% say they do not have a formal fraud risk management framework
* e-commerce & computer-related fraud to be a source of major concern in the coming years
* 75% all fraudulent activities, except Intellectual Property (IP) fraud were perpetrated by employees

The new age ETHICS-LINE ….

In addition to the earlier article, here are a few segmental solutions provided by EthicsLine.

The new Ethicsline solution will include:

  • 24/7/365 Telephone Hotline to accommodate the confidential and anonymous intake of allegations of business misconduct or noncompliance by live Communication Specialists. Interpretation is available in up to 150 languages.
  • 24/7/365 Web Hotline to complement the telephone hotline service and accommodate the confidential and anonymous intake of allegations from any computer with Internet access. The standard web reporting site is pre-translated in 30+ languages and additional languages are available.
  • Categorization of reported allegations during intake to facilitate the distribution of reports in accordance with your organizational structure and investigation workflow, and to enable trending and analysis by issue type.
  • Automated Transactional Report Delivery via e-mail and online featuring your choice of centralized or decentralized report distribution.
  • Case Management System for the management and analysis of reported issues across all sources of receipt. Using Case Management, you can review and respond to reported issues, enter reports received internally, assign and manage case investigations to resolution, search and analyze reported data, and create and manage investigative users. Real-time summary charts and graphs also allow you to drill-down, print, and export the data.
  • Monthly Summary Management Reports provide graphical and tabular views of report volume and issue types.

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Waiters Aren’t the Only Ones Who Rely on TIPs !! Innovative FRAUD prevention Technique

I came across this extremely  innovative concept in an advertisement of ETHICSLINE, an Hotline provider in ACFE‘s Anti-Fraud Resource Guide that states

“IPs are the leading method for detecting organizational FRAUD & Abuse.”

Well, right here is an extremely amazing & clandestine idea that was revealed to me & its a pleasure to share this info with you all.

Everybody has heard about various HOTLINE’s available for different products & concepts viz.  Customer care, Order, Inquiries, Public facilitation, etc. But has anyone ever thought about maintaining the information database on numerous Compliance issues for an induvidual, a Company or any form of Business Entity.

Why is it Necessary:

Hotlines provide a confidential and anonymous means through which fraud and other forms of business misconduct may be reported. Since no organization is immune to organizational fraud and abuse, a hotline can enable early detection and minimize the negative impact to your business.

And, hotlines are mandatory for many companies: Section 301 of Sarbanes-Oxley (SOX) requires publicly traded corporations to establish procedures for the confidential and anonymous submission of concerns regarding accounting or auditing matters. Even private companies, academic institutions, and government entities who are not currently required to comply with SOX have instituted hotlines since they are relatively inexpensive “insurance” when compared to other forms of internal control and provide real, measurable, anti-fraud benefits. Hotlines are also a core part of an “effective” ethics and compliance program as defined by the U.S. Federal Sentencing Guidelines.

What is it about?

Global Compliance introduced the original compliance reporting hotline in 1981 and is now the largest and most innovative provider – serving thousands of clients and their 25 million employees in over 200 countries. Global Compliance’s current client base includes 50% of the Fortune 100, 35% of the Fortune 1000, and 25% of the Global 500, along with major academic institutions, government entities, and non-profit organizations.

As the most experienced provider of hotlines worldwide, Global Compliance has built a proprietary database of over 3 million hotline reports – it’s the largest and most robust source of ethics and compliance reports in the world.

In addition to hotline and case management services, Global Compliance also offers expert advisory services, training and awareness programs, and benchmarking that leverages the proprietary database and provides contextual insight into ethics and compliance program performance. These services are also offered and delivered globally to its international client base today.

Hotlines are an effective means of uncovering allegations or concerns specific to:

  • Accounting, Auditing, and Financial Reporting
  • Business Integrity
  • Diversity, Equal Opportunity, and Workplace Respect
  • Environment, Health and Safety
  • Human Relations, Administrative, Compensation
  • Misuse or Misappropriation of Organizational Assets, Information

read more info @

5 Quick Tips for Job Seekers against Job Fraud!

Always be prepared from the fraud which lots of companies are doing with the fresher. Some times the experienced people too faces the same situation, so always be prepared to fight against job fraud. Here are a few quick tips which can ensure you from frauds:

#1 Tip: Never reveal your confidential detail to any employer: Always be prepared to say NO to any employer if he asks for either your credit card details or any type of secured numbers. If some one asks these details then it is better not to join that organization.

#2 Tips: Never join the Organization if they don’t have any Business Plan: If you have faced the interview in any organization and that organization is not having any Business Plan or Model, then don’t plan to join that one. They will always make you unsatisfied in long run.

#3 Tips: Do not join the company which has not taken proper Interview: This is also one sort of fraud, many companies don’t take any sort of interviews and they offer you to join them. Leave them immediately otherwise you might feel problem with them. It is in fact my personal opinion that there is always some kind of fraud behind these types ofcompanies which offers you without taking any type of interviews either front to front or telephonic one.

#4 Tips: Leave the company immediately if they ask you any amount to deposit: This is the biggest type of fraud I have ever seen. Not a single good company is there which will ask you to deposit any amount before giving the offer letter to you. So if any company asks you to deposit any amount then leave them immediately.

#5 Tips: Check the Offer Letter Properly: Offer letter is the main source of information about any company at initial level. Once you will get the offer letter go through each and every word of the letter with proper care. Check if there is something which is objectionable. Do the research from your self about the past of the company.

It is the time when students are facing the campus interviews; lots of companies are recruiting them despite the global downfall of the market. So it is good to prepare against any sort of fraud. Always be sure to join anycompany, since if it is your first job then it is going to affect you through out your life.

KPO Jobs, IT/ITES Jobs, Outsourcing Jobs, Marketing Jobs, Legal Jobs, HR Jobs, KPO Placement, LPO Jobs, Finance Jobs, Temp Staffing –

This site seems interesting…… Happy hunting guys……..

KPO Jobs, IT/ITES Jobs, Outsourcing Jobs, Marketing Jobs, Legal Jobs, HR Jobs, KPO Placement, LPO Jobs, Finance Jobs, Temp Staffing –

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Resume Spotlight

Mr. Sunil Kumar Ailani
Post Graduate Diploma in  Management, MICA

DOB : 13th June, 1983

Mobile : +91-9974379329

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In quest of enriching assignments with key focus on Research / Marketing / Communications with a growth oriented organization

Management Trainee – 2 Months (LinOpinion (LOWE Lintas PR Division), Mumbai)

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Ms. Deepshikha Sharma
B.Tech (Biotechnolog), Rajasthan University, Jaipur

20th Sept., 1985

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Working for an organization where I can apply my skills for the betterment of the company

Trainings attended at Ranbaxy, Dr. B Lal’s Clinical Laboratory & Bhagwan Mahaveer Cancer Hospital and Research Centre, Jaipur

Mr. Ashok Mallick
IP Analyst (KPO)

01st April, 1982

Mobile : +91-9734429409

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To become a sophisticated individual in a challenging environment that provides opportunities to prove and enhance my skills as a successful leader in an organization.

B.Tech (Chemical Eng.), Haldia Institute Of Technology, Haldia.
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Patent Analyst (KPO)

26th Nov., 1981

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A challenging professional career opportunity in the field of Intellectual Property Rights with special interest in Patents.

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Inadequate bosses ‘turn into bullies’

Bosses who feel inadequate are more likely to bully subordinates, says a new study

Inadequate bosses ‘turn into bullies’

Inadequate bosses ‘turn into bullies’

Published in the journal Psychological Science , the study says it is so because feelings of inadequacy trigger them to lash out at those around them.

In the study, researchers at University of California, Berkeley and University of Southern California found a direct link among supervisors and upper management between self-perceived incompetence and aggression.

The findings are published in the November issue of the journal Psychological Science .

The new study challenges previous assumptions that abusive bosses are solely driven by ambition and the need to hold onto their power.

“By showing when and why power leads to aggression, these findings are highly relevant as abusive supervision is such a pervasive problem in society,” said Nathanael Fast, assistant professor of management and organization at USC and lead author of the study.

During role-playing sessions, study participants who felt their egos were under threat would go so far as to needlessly sabotage an underling’s chances of winning money. In another test, participants who felt inadequate would request that a subordinate who gave a wrong answer to a test be notified by a loud obnoxious horn, even though they had the option of choosing silence or a quiet sound.

Researchers did not rate participants by an objective measure of competency, but by their self-reported level of competency. This allowed them to investigate how feelings of self-worth are tied to workplace behavior.

“Incompetence alone doesn’t lead to aggression,” said Serena Chen, associate professor of psychology at UC Berkeley and co-author of the study.

“It’s the combination of having a high-power role and fearing that one is not up to the task that causes power holders to lash out. And our data suggest it’s ultimately about self-worth,” the expert added.

Alternately, Chen said, participants who got ego boosts by scoring high in a leadership aptitude test or who recalled an incident or principle that made them feel good about themselves did not react with aggression.

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