Indian Companies Brace for Surge in Platform Fraud Amidst New Wave of Economic Crime

As per the latest report by PwC, platform fraud has become the most common form of economic crime in India, accounting for 57% of all fraud incidents.

Growing Concern: Platform Fraud in India

New Delhi, May 11: Amidst the new wave of economic crime, platform fraud is on the rise in India, says a new report by PwC - ‘Platforms: The New Frontier of Fraud in India’. This form of economic crime cost organizations over $1 million in losses for more than a quarter of those affected (News18).

The trend was accelerated by the COVID-19 pandemic and the resulting surge in remote work, e-commerce, and contactless payments.

key findings of the report

1. Platform fraud is the most common form of economic crime in India.
2. 57% of all fraud incidents were platform frauds.
3. More than 26% of Indian organizations lost over $1 million due to these frauds.
4. Financial gain was the primary motivation for 44% of the perpetrators.

The report also revealed that perpetrators targeted enterprise platforms, financial platforms, social media, e-commerce, and other service-based platforms.

Risks and Motivations

Ransomware, money laundering, and phishing are some of the most common types of fraud affecting enterprise platforms.

According to Puneet Garkhel, Partner and Leader (Forensic Services) at PwC India,:

“Platform fraud is a growing concern for Indian companies, and its prevalence and evolving nature require greater attention and investment in fraud prevention and detection strategies,"… “Indian businesses, now relying more on platforms for their daily operations, must understand the risks and take adequate measures to safeguard themselves from these threats.”

Mitigating Platform Fraud

As a response to this growing threat, Indian companies are encouraged to:

1. Understand the risks and vulnerabilities of their platforms.
2. Implement robust fraud prevention and detection measures.
3. Collaborate with platform providers and regulators to enhance security.
4. Educate and train employees on best practices for protecting themselves and their organizations from platform fraud.

As businesses continue to rely on platforms for their operations, understanding the risks and taking proactive measures to address the challenge is crucial.