New findings reveal that most Indian fraudsters are trusted insiders exploiting procurement and operations loopholes
In a time when corporate governance and risk oversight are under intense scrutiny, a new KPMG report reveals that the enemy is not always at the gate—but often within. According to the Global Profiles of the Fraudster – India Outlook, a majority of frauds in India are committed by long-serving, male employees in positions of trust, often without raising red flags until it’s too late.
A familiar face, not a shadowy intruder
The typical Indian fraudster is a male between 26 and 45 years of age, with over six years of service within the organisation. Most often, they hold middle management roles (39%), followed by executive-level positions (28%). These individuals are frequently described as respected, friendly, and even charismatic—attributes that can help them fly under the radar.
Greed over grievance
The top motivation? Simple financial gain. The study highlights greed (18.4%), opportunistic behaviour (17.1%), and personal financial pressure (6.6%) as the most common triggers. Interestingly, unlike global trends, emotional triggers like being overlooked for promotion or organisational grievances play a much smaller role in India.
Procurement and operations: The weakest links
Over half of all fraud cases in India occur within procurement (30%) and operations (24%) departments, often due to weak internal controls and oversight. While financial fraud is rampant globally, bribery and falsified documentation rank high in India alongside misappropriation of assets.
Low value, High impact
While 72% of reported frauds in India involved financial losses under USD 200,000, the local economic impact—especially in terms of purchasing power—can be substantial. These smaller, harder-to-detect frauds add up to significant cumulative damage.
Collaboration and control gaps
Fraud is rarely a solo act. In India, 57% of cases involved more than one perpetrator, and notably, 81% of collaborators acted as principal offenders—indicating more bottom-up fraud rather than top-down orchestration.
Perhaps most alarming is the role of unchecked authority. In many cases, fraudsters had unrestricted access or decision-making power, with little or no oversight—a systemic vulnerability that needs urgent correction.
Tech still a minor player
Despite the rise of digital platforms, only 13% of frauds in India required technology to be committed. Traditional fraud methods remain dominant, though experts warn that emerging threats—like AI-generated deepfakes—could change the game quickly.
Whistleblowers lead the fight
Formal whistleblowing channels remain the top method of fraud detection in India (38%), ahead of management reviews and informal tip-offs. This reinforces the importance of cultivating an ethical culture and empowering employees to speak up.
The Bottom Line
KPMG’s findings are a call to action for Indian companies. Stronger internal controls, periodic audits, ethical training, and well-publicised reporting channels are no longer optional—they’re critical. As fraudsters evolve, so must corporate vigilance.
Read the complete report here – https://kpmg.com/in/en/insights/2025/07/global-profiles-of-the-fraudster-india-outlook.html
