India’s Battle Against White-Collar Crime: A Changing Landscape

The Indian economy is experiencing a surge in business opportunities due to favorable regulations and increased foreign investment. The Make in India campaign has boosted business confidence and put India on the global investment map. However, this economic growth comes with the risk of white-collar crime.

Risks of White-Collar Crime

White-collar crime includes:

• Fraud
• Bribery
• Corruption
• Cyber threats
• Counterfeiting
• Insider trading
• Embezzlement
• Racketeering
• Larceny

(Forensic & Integrity Services, 2016)¹

White-collar crime poses a significant threat to both national and global economies due to its complexity and sophistication. (Forensic & Integrity Services, 2016)

Response of Mature Markets

Mature markets like the US and the UK have effectively dealt with white-collar crime by:

• Implementing strict anti-fraud and anti-corruption frameworks
• Imposing penalties on errant companies and fraudsters
• Investing in forensic technology

(Forensic & Integrity Services, 2016)

Response of India

India, an emerging market, has responded with determination. The Companies Act amendment in 2013 and the introduction of the Insolvency and Bankruptcy Code in 2015 are significant steps taken to enhance governance and mitigate fraudulent activities. The Indian government is also looking into strengthening regulatory mechanisms and investing in technology to combat white-collar crime effectively.

Specific Concerns

E-commerce

E-commerce is a particular concern, as it has become a breeding ground for fraudulent activities, including counterfeit goods sales, logistics fraud, and data security breaches.

Cybercrime

Cybercrime, specifically ransomware and spear phishing, is another growing concern. Cybercriminals are targeting individuals, businesses, and governments for financial gain.

Solutions

To curb these risks, Indian companies and the government need to:

• Collaborate
• Adopt advanced forensic technologies
• Establish robust internal controls
• Foster a culture of transparency and ethical business practices

(Forensic & Integrity Services, 2016)

A strong enforcement regime, including collaboration with global enforcement agencies, will also be crucial in combating these challenges effectively.

References

1. Forensic & Integrity Services. (2016). The changing dynamics of white-collar crime in India. Retrieved from https://www.ey.com/in/en/issuesandinsights/item/062616_04032216_in_white_paper_wcci_fy16/the-changing-dynamics-of-white-collar-crime-in-india
2. Mathur, S. (2016). White-collar crime: A growing concern amid India’s economic surge. Retrieved from https://economictimes.indiatimes.com/magazines/panorama/white-collar-crime-a-growing-concern-amid-indias-economic-surge/articleshow/53721755.cms?from=mdr
3. Singh, A. (Partner and Head - India and Emerging Markets, Forensic & Integrity Services, EY). (2016). Introduction. In The changing dynamics of white-collar crime in India (pp. 1-2). Ernst & Young LLP.