Corporate frauds to rise in next 2 years: Deloitte-IOD

Study cites pandemic induced pressure

Corporate fraud cases will rise in the next two years because of COVID-19 related pressures, 63% of independent directors (IDs) said in a survey.

This is because COVID-19 has significantly disrupted business environments, leading to change in business models, cash flow crunch, and remote working environment, which have exposed organisation and individuals to increased fraud-related vulnerabilities, the survey by Deloitte Touche Tohmatsu India LLP (DTTILLP), in association with the Institute of Directors (IOD), revealed.

Cybercrimes (23. 90%), financial statement fraud including incorrect business valuations (20.96%) and leak of sensitive information (12.87%) are the most likely fraud schemes to be experienced in the near future, according to the findings.