Real estate and infrastructure sectors are considered most vulnerable to incidence of fraud, a survey has found.

Indian corporate fraud has shot up over 45 per cent in the last two years because of weak internal controls, scarce resources at a company’s disposal and over-riding powers of senior management, according to an Assocham-Grant Thorton study released on Wednesday.

The real estate and infrastructure sectors (52 per cent) are considered the most vulnerable to fraud-related incidents.

Will keep rising

These sectors are followed by financial services (34 per cent), telecom (5 per cent), manufacturing (3 per cent), electronics and information technology / ITeS (2 per cent), and hospitality and tourism (2 per cent). Around 71 per cent of respondents said the incidence of fraud would continue to rise over the next five years, and highlighted bribery and corruption, and regulatory non-compliance as the top frauds they had experienced in the past two years.

According to reports from the Reserve Bank of India, during 2012-13, as many as 29,653 cases of fraud were detected in India’s nationalised banks, totalling ₹24,828 crore, the survey said.

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