In the past two years, an alarming 59% of Indian companies have fallen victim to financial or economic fraud, according to PwC's Global Economic Crime Survey 2024 - India Outlook. This represents a significant increase of 18% compared to the global average of 41%, and a 7% rise since PwC's 2022 survey in India.

Procurement fraud has emerged as the leading concern for Indian businesses, with half of the respondents identifying it as a major threat. This marks a 21% rise compared to the global trend, while customer fraud, which was a primary issue for 47% of Indian companies in 2022, has now taken a backseat.

The report highlights that despite efforts to combat fraud, only 37% of Indian companies monitor real-time payments and block suspicious transactions. In response, many businesses are using data analytics, with 52% reviewing transactions before deals and 46% doing so afterward. However, these efforts fall short when it comes to effectively preventing fraud, with only 44% of Indian respondents using data analytics to identify unusual bidding patterns.

Corruption and bribery are also significant challenges, accounting for 33% of economic crimes globally. In India, 26% of respondents listed these as top disruptive economic crimes over the past two years. However, the outlook is slightly more positive when it comes to compliance, with 82% of Indian business leaders expressing confidence in their companies' ability to mitigate corruption risks through compliance programs.

On a global scale, 77% of business leaders felt confident in their organization's efforts to address corruption. Within India, however, 20% of company leaders believe that corrupt practices, including improper payments to government officials or customers, have increased in the last year. Meanwhile, 34% reported a decrease in corruption levels.

One concerning finding from PwC's survey is the increasing prevalence of forced labor across various sectors, including manufacturing, fashion, agriculture, and hospitality. In India, 16% of companies are actively addressing this risk, while 24% are evaluating it. However, 26% of companies are unaware of its impact on their operations, and 19% recognize the issue but lack plans to assess it further.

PwC's 2024 survey underscores the growing challenges of financial fraud, corruption, and forced labor in India. As businesses face these risks, it is clear that more proactive and strategic measures are needed to tackle these complex issues.