e-Crime, an increasingly sophisticated menace to businesses and consumers

Woman holding credit cardWhen “everything is becoming digital,” private, public, and civil institutions become more dependent on information systems and more vulnerable to cybercrime. To fully derive the value inherent in technological innovation, a robust and co-ordinated system is essential to effectively mitigate the risks of cyber-attacks.

But what needs to be done? And how can it be achieved?

To address these questions, EY organised a workshop on behalf of Association of Certified Fraud Examiners (ACFE) Mumbai Chapter titled ‘Use of Data Analytics and Prevention of Credit Card Frauds’. Mr. Vinay Kargaonkar, IPS, Special Inspector General of Police and Chief Vigilance Officer, Sales Tax Department, Government of Maharashtra led the workshop with a presentation on ‘Business Intelligence & Data Analytics in detecting tax evasion and frauds’.

Mr. Kargaonkar explained about how the Maharashtra Sales Tax Department (MSTD) was amongst the first states in India to start computerisation of sales tax. MSTD initiated the pilot project known as ‘360 degree analysis’ project unit wherein revenue related information from various departments such as income tax, central excise, customs, and service tax is shared and analysed by this unit.

The unit identifies discrepancies by comparing CBDT & CBEC Returns data (Imports, ITR, Service Tax and Central Excise) with MSTD returns data amongst importers and dubious dealers. Various business intelligence tools are being used to detect tax evasion cases and help with analysis of tax data to support policy decisions. These effective tools enable to provide a risk profile of dealers that is generated from various risk categories such as wrong tax credits, hawala risk, mismatch risk etc.

The second part of the workshop was conducted by Mr. Pinaq Dudhwala, National Manager – Financial Crime Prevention (Cards & Electronic Channels), ICICI Bank Limited. Mr. Dudhwala gave the members present an overview of the evolution of cyber-crime and card crimes. He mentioned the different type of card frauds committed by a fraudster and the preventive measures that can be implemented to curb this menace. He concluded the talk by urging the members to be cautious at ATMs and upgrade their defences to mitigate any type of crime.

The objective of workshops such as these is to educate the burgeoning Certified Fraud Examiner (CFE) fraternity and bring corporate executives across industries together on a common platform to address similar dilemmas around fraud and corruption related risks. The ACFE Mumbai Chapter continues to guide the fraud examiners community on latest techniques and methods that will help them in their professional journey.


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