Companies look at data analytics to detect future frauds caused by Covid pandemic

MUMBAI: As the Covid pandemic is set to result in a steep jump in corporate frauds as companies faced huge disruption, data analytics could lead to detection of these frauds, a Deloitte survey pointed out.

The survey said that about 35 percent respondents believed that future frauds would be detected using data analytics and other technology tools.

Despite a growing realisation that technology would be key to future fraud risk management efforts, less than 5 per cent respondents indicated investing in anti-fraud technologies in the past six months.

“Traditionally, many Indian organisations have directed a majority of their FRM efforts towards fraud detection, whereas technology interventions can be primarily geared towards fraud prevention. This will require a shift in mindset from fraud detection to fraud prevention. We believe this shift can be enabled by working towards building an enterprise-wide view of fraud and making strategic technology investments,” said Nikhil Bedi, Partner and Leader, Forensic, Financial Advisory, Deloitte Touche Tohmatsu India.

The report added that technology can also help organisations in fraud response, particularly if it involves responding to a regulator or seeking legal recourse. About 50 percent respondents indicated seeking legal action against the parties involved in fraud (compared with 33 percent in the previous edition of our survey). “The confidence to seek legal recourse may be a result of regulatory changes that are increasingly pushing for greater disclosures, as well as increased use of technology by organisations that can help document and preserve evidence to aid in faster resolution of cases,” Bedi said.