Fast digital transformationwithout appropriate internal controls, has created new vulnerabilities. The anatomy of modern fraud is becoming increasingly sophisticated, often involving cross-departmental involvement to exploit gaps in oversight. The EY-FICCI knowledge paper “The Fraud Factor” emphasizes that organizations must embed integrity into every level of operations, supported by structured reporting frameworks, regular audits and leadership accountability.
India's Digital Personal Data Protection Actthe proposed National AI Safety Institute and global frameworks such as the EU AI Act and GDPR are changing compliance expectations. With 69% of Indian respondents finding it difficult to keep up with regulatory changes and 62% believing that unethical behavior is often tolerated when committed by senior leaders, the growing gap between policy and practice is evident and can be bridged through sound governance and ethical leadership.
According to the ACFE Report to the Nations 2024, 43% of fraud cases are uncovered through tips. However, the GIR results show that 76% of Indian respondents felt pressure not to report misconduct and 51% witnessed retaliation against it Whistleblowers. Addressing this issue requires safe, accessible and well-communicated whistleblowing mechanisms, supported by managerial support and staff training.