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Technology frauds: a changing world - EY - India

A study by Forensic Technology & Discovery Services

Technology frauds: a changing world

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This report is based on a study conducted by EY to measure awareness levels and counter measures adopted by businesses against technology fraud.


From across sectors, 100 respondents were interviewed to understand:

  • Employees and their company's experience of technology-led instances of fraud
  • Awareness about relevant Indian Laws & Regulations such as IT Act 2000, Indian Evidence Act 1872 and the new data privacy law
  • In-house skill sets of the investigating team and IT forensic tools employed


The study revealed that there is lack of requisite skill set and experienced investigators within the companies, low level of awareness on the correct approach to a technology-associated fraud investigation and the use of right computer forensic tools.


"In any investigation, it is imperative to understand the modus operandi of the fraud, the extent of damage, and then take a punitive action against the fraud perpetrator. These requirements make any investigation a highly specialized process, which requires forensic tools, technology & people to cull data in a secure environment so as to maintain confidentiality of the information."

Arpinder Singh,
Partner - Fraud Investigation & Disipute Services,
EY.

Key findings of the study are as follows:

  • Nearly 85% of the respondents to our survey said that their company had more than 50% of the data in electronic form.
  • The majority of respondents (74%) perceive IT fraud a more serious threat than any other fraud.
  • More than one-fourth of the respondents revealed that their company has experienced an IT fraud incident.
  • One-third of the respondents were unaware about the Indian IT Act 2000, and had little awareness about the Indian Evidence Act and the new data privacy law.
  • Even though 63% of the respondents claimed that their in-house team is qualified to perform IT-fraud related investigations, only 9% of these could provide details of the requisite qualifications.
  • Still 60% of the respondents said that their companies preferred an in-house team to conduct the investigation over any specialist agency — government or private.
  • An alarming number of respondents (61%) revealed that their companies rely on basic spreadsheet software for IT fraud investigations.

Through this study, we took a closer look at how organizations are specifically addressing the IT fraud risk in the current environment. We also examine potential opportunities for improvement and identify trends that will shape forensic technology in the coming years. Download this report for details.

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