Firms Pad Up, Look for Lawyers as Frauds Rise

PwC found that 59% of firms had faced financial fraud in past 24 months

- Krishna Yadav & Mansi Verma

A surge in white-collar crimes over the past two years is prompting Indian companies to tighten internal controls and seek legal counsel to protect against potential liabilities, experts told Mint.

Firms in high-risk sectors like financial services, including Mahindra Finance, are proactively working with law firms to strengthen compliance and flag anomalies early, as tech-enabled fraud and remote work increase vulnerabilities.

"There has been a 50-70% rise in white-collar crimes and corporate frauds over the last two years," said Sahil Kanuga, partner at law firm Cyril Amarchand Mangaldas, who tracks white-collar crimes.

An employee emailing an official document to himself, sanctioning funds approved by the CEO over email, or a spurt in transactions at odd hours could trigger scrutiny for white-collar crimes.