IT SECURITY

AND FINANCIAL
SCAMS
INTRODUCTION
 Corporate fraud

Fraudulent Misappropriation
External Factors
Financial reporting of Assets
 When it comes to fraud, technology is a
double edged sword. It is both a
potential threat and a potential
protector.
Technology:
29% of companies said they spent at
a double least twice as much on investigating and
preventing fraud as was lost through the
edged most disruptive economic crimes.
sword
Over the last 5 years financial frauds are
increasing & one of the major reasons
being technology.
Case studies
 Cosmos bank- PUNE, 2018

 PNB/Nirav Modi scam

PRIMARY RESEARCH REGARDING
THE CURRENT SITUTATION OF
BUSINESSES:
 Data collected from 30 businesses functioning in
different sector.
 Following are the major findings that were uncovered:
1. 45.8% of the businesses did not recognize the industry
cybersecurity standards & 25% were unaware of its
existence.
2. 41.7% have not trained their staff to identify a cyber
security threat.
3. 68.7% do not have a designated cyber security
personnel.
 CURRENT SCENARIO OF
PERCEPTION OF CORPORATE
FRAUD:
 58% of survey respondents
believe that incidents of fraud
will rise in the next two years.
 The top three reasons for
fraud include:
1.Lack of an efficient internal
control/ compliance system
2. diminishing ethical values
3. senior management override of
controls
STUDENTS PERSPECTIVE ON
COMBATING CORPORATE FRAUD
Suggestions to combat
fraud
1. Fraud risk assessment
2. Using the protective power of technology
3. Invest in people, not machines
  Fraud risk assessments are the
first step in preventing fraud
before it takes root.
 Despite the increase in spending,
many organizations are still
addressing fraud prevention by
using a reactive, defensive
approach:
• Only 54% of global
FRAUD RISK

organizations said they have
conducted a general fraud or
ASSESSMENT economic crime risk assessment
in the past 2 years.
 • Less than half said they had
conducted a cybercrime risk
assessment.
 One in ten respondents had not
performed any risk assessments
at all in the past 2 years.
 PROTECTIVE
POWER OF
TECHNOLOGY
Suggestive measures:
 Preventing the
opportunity: controls
 Preventing the
incentive: openness
 Preventing
rationalization: culture
CONCLUSION

 Human capital is of utmost importance.

 Preventive controls should be invested in and should not
be ignored.
 Use technology as a shield.
THANK YOU