Corruption, bribery, frauds: Indian firms worst hit

India has the second highest number of fraud-hit companies, according to a report by global advisory firm Kroll.

Theft of physical assets or stock was the most frequent (27%) type of fraud reported.

The report is based on interviews of 800 senior executives worldwide, including 60 from the country.

The percentage of domestic businesses affected by fraud has fallen from last year's 84%, she said, adding, "but our experience suggests that while concern for fraud may be falling, fraud is not".

Domestic companies lose on an average 1.2% revenue due to frauds, significantly higher than global average of 0.9%, the report said, suggesting that companies continue to develop strong and well-organised internal controls.

Moreover, 22% of local firms weakened their internal controls frequently as a result of budget constraints, one of the highest figures of any country.

According to the report, 50% of respondents here consider themselves vulnerable to corruption and bribery-related frauds, more than any other type of fraud.

India (Rank 2)
Fraud hit companies (2011-2012): 68%
Fraud hit companies (2010-2011): 84%

Take a look at the worst affected nations in terms of fraud-hit companies...

Africa (Rank 1)

Fraud hit companies (2011-2012): 77%
Fraud hit companies (2010-2011):85%
Theft of physical assets or stock: 32%
Information theft, loss, attack: 34%
Corruption and bribery: 20%

...

China (Rank 3)

Fraud hit companies (2011-2012): 65%
Fraud hit companies (2010-2011): 84%
Theft of physical assets or stock: 27%
Information theft, loss, attack: 21%
Corruption and bribery: 19%

...

Indonesia (Rank 4)

Fraud hit companies (2011-2012): 65%
Theft of physical assets or stock: 16%
Information theft, loss, attack: 35%
Internal fraud or theft: 19%

...

Europe (Rank 5)

Fraud hit companies (2011-2012: 63%
Fraud hit companies (2010-2011): 71
Information theft, loss, attack: 18%
Theft of physical assets: 23%

...

Russia (Rank 6)

Fraud hit companies (2011-2012): 61%
Theft of physical assets or stock: 26%
Information theft, loss, attack: 26%
Corruption and bribery: 16%

...

United States (Rank 7)

Fraud hit companies (2011-2012: 60%
Fraud hit companies (2010-2011): 65%
Information theft, loss, attack: 26%
Theft of physical assets: 24%
Management conflict of interest: 16%

...

Mexico (Rank 8)

Fraud hit companies (2011-2012: 59%
Fraud hit companies (2010-2011): 69%
Information theft, loss, attack: 26%
Theft of physical assets: 19%
Corruption and bribery: 15%

...

Brazil (Rank 9)

Fraud hit companies (2011-2012: 54%
Fraud hit companies (2010-2011): 73%
Information theft, loss, attack: 14%
Theft of physical assets: 17%
Management conflict of interest: 23%

...

Columbia (Rank 10)

Fraud hit companies (2011-2012: 49%
Theft of physical assets, stock: 19%
Vendor, supplier, procurement fraud: 19%
Regulatory or compliance breach: 30%

...

Gulf states (Rank 11)

Fraud hit companies (2011-2012): 49%
Theft of physical assets or stock: 18%
Management conflict of interest: 15%

...

Canada (Rank 12)

Fraud hit companies (2011-2012): 47%
Fraud hit companies (2010-2011): 70%
Theft of physical assets (24%)
Management conflict of interest: 14%