According to a survey conducted by KPMG, most cases of fraud in India go unreported while very few of these reported cases lead to enforcement action, disciplinary action, resignation, or voluntary retirement.

The survey, which is titled “Who is the typical Fraudster”, collected and analyzed information based on 348 actual fraud investigations in 69 countries across Europe, Middle East, and Africa region. The survey concluded that frauds take longer to detect in Asia compared to anywhere else in the world.

In India, the survey found that a stunning 88% of frauds are not communicated while only 25% of reported cases lead to enforcement action. Of the few reported cases, only 20% lead to disciplinary action, and only 19% lead to resignation or early retirement.

The survey also found that 42% of corporate fraudsters in India are male between the ages of 36 and 45 and the survey also found that “typical” fraudsters work in a finance related role.

According to Rohit Mahajan, Executive Director of Forensic Services, KPMG in India, there are a few key explanations for India’s high rates of unreported fraud.

“Companies are too focused on the front end (growing the business) rather than the back end (the support functions) so red flags get ignored or treated as one-offs. When frauds blow up, it’s typically several years down the line”, he said.