Indian Companies Are Waking Up to Corporate Frauds ; India Inc. Loses Crores of Rupees to Fraud, Some of It by Senior Management Personnel, Most of Which Is Not Even Reported. But Now, Companies Are Belatedly Waking Up to This Problem.

Summary

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The company: A midsized BPO. Last year, an accountant spotted an anomaly: an employee had received joining bonuses twice in consecutive months. The employee was not entitled to it and, therefore, he suspected something more than just a case of oversight. PricewaterhouseCoopers (PwC), called in to investigate the matter, unravelled a scam by an HR executive involving joining bonuses and referral bonuses.

Apart from handing out fictitious joining bonuses, the HR executive had created a fake referral bonus scheme. He would bring in new recruits, award an employee fake referral bonuses, and later take a share of the booty. The upshot: some employees were asked to leave.

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Extract

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Indian Companies Are Waking Up to Corporate Frauds ; India Inc. Loses Crores of Rupees to Fraud, Some of It by Senior Management Personnel, Most of Which Is Not Even Reported. But Now, Companies Are Belatedly Waking Up to This Problem.

This is just one instance of fraud that takes place in India Inc. every day. And unlike in the above example, they are, in a significant majority of cases, simply glossed over.

And this trend is likely to gather strength as the economy slows down. Says Navita Srikant, Partner, Fraud & Dispute Services, Ernst & ...

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