Forensic Helping you build an Ethical Enterprise · 2020-03-26 · investigations, ethics e-learning, etc. Deloitte Consultant 1 2 3 Whistle-blower contacts the Ethics Line (website,

Forensic Helping you build an Ethical Enterprise

August 2019

Forensic | Helping you build an Ethical Enterprise© 2019 Deloitte Touche Tohmatsu India LLP 2

We help by…

What do we do

D E T E C T I N Gfraud and helping respond to it

E S T A B L I S H I N Gfacts and evidence gathering

S T R E N G T H E N I N Glegal position

A D D R E S S I N Gfraud misconduct and regulatory non-compliance

I D E N T I F Y I N Gpossible frauds and red flags

1 2

3 4

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A S S I S T I N Gfor response to fraud misconduct and non-compliance

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Providing support in R E S O L V I N Gdisagreements and disputes with stakeholders

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A portfolio of services

Forensic practice

Fraud Risk Management

Whistleblowing Hotline

Business Intelligence

Fraud Investigation

Anti-Bribery and Corruption Advisory

Litigation and Dispute Advisory

Financial Crime Compliance (includes

Anti-money laundering/ Stressed Asset Mgt.)

Forensic Data Analytics

Computer ForensicsAnti-Sexual Harassment Advisory

Brand Protection Advisory

Anti-trust and Competition Advisory

Forensic SDLC (software development

life cycle) Governance

Revenue Fraud Management

Fraud Management System Advisory

Insolvency Advisory


Fraud Risk Management

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Know exposure to fraud risks or vulnerabilities

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Investigate the signals –cases of confirmed and alleged fraud

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Detect the gaps in the existing fraud prevention and detection control mechanism

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Recommend remediation measures and tools to implement. Treat the fraud signals.

A 3600

approach to anti-fraud

control measures

We can assist with the development of anti-fraud policies, procedures and controls, as well as design and deliver customized trainings to management and staff

Key areas covered include:

• Employee ethics and fraud awareness

• Ethical dilemma and Fraud vulnerability

• Development of a fraud response management plan

• Assistance in the investigation of fraud


How does it work?

Whistleblowing Hotline/ Service

Whistleblowing hotlines can give employees a voice to confidentially report workplace concerns and enable you to identify andrectify problems before they damage your business and its reputation

Deloitte Tip-Offs Anonymous Highlights

• Multi-channel operation supporting Website, Email, Toll-free number, Post box and Fax

• Over 16 foreign languages supported

• Information security: ISO 9001:2008 Certified, Ethics South Africa accredited

• Compliant with whistle-blower legislation

• Seamless integration and support for carrying out fraud risk management, forensic investigations, ethics e-learning, etc.

Deloitte Consultant

1

2

3

Whistle-blower contacts the Ethics Line (website, e-mail, toll free number, Post Box, Fax)

Report analysts remove the whistle-blower’s identity, capture the report

and alert the subscriber representative

Whistle-blower contacts the Ethics Line, to receive

feedback regarding the concern in question

WHISTLE-BLOWER

SUBSCRIBER REPRESENTATIVE

DELOITTE REPORT ANALYST


Business intelligence equips you with the ‘right information’ to mitigate the potential risk of fraud and corruption

Business Intelligence

We can help provide useful and actionable insights on fraud, corruption and other reputational issues, helping organizations safeguard their investments

Our BI team comprises of former law enforcement and intelligence officers, experienced journalists, political risk experts, sector specialists and a large vendor network that have a deep understanding of local risks to access the most detailed information across sectors and fields

Operational Risk

Assessment

Investigative Diligence

Strategic and

Competitor Intelligence

Asset Tracing

Screening and Red-flag

Identification

Vendor/ Business

Partner Due Diligence

Integrity Due Diligence

Senior Management

Due Diligence


Fraud Investigation

We conduct event-led investigations to help you answer the five key questions

What happened?

1

How did it happen?

2

What is the quantum?

Who was involved?

How do we plug the gaps?

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The key steps involved are:

• Preparing an investigation plan

• Understanding the issues

• Gathering evidence through document review, computer forensics, data analytics and market intelligence

• Reporting the findings and way forward


• Policies and procedures to adhere to ABC compliance (UKBA/ US FCPA, local law)

• Dealings/business with third-party agents

• Payments to foreign officials

• Gifts and entertainment

• Employee expenses (including travel expenses)

• Employee disclosures

• Charitable and political contributions

• Ensuring correct recording of expenses

• Classroom education and training including case studies

• Quiz conducted periodically to ascertain understanding of relevant ABC issues

• Online learning and training modules

• Ethical dilemma workshops

• Guidance evaluating the relative risks of the business and to implement appropriate procedures

• Conducting periodic risk assessments to ensure compliance to statues

• Controls and procedures to detect/prevent improper payments

• Guidance on management messaging on ABC issues

• Testing to assess operating effectiveness

• Due diligence on third-parties

• Procedure to report violations internally and externally

Anti-Bribery and Corruption Advisory

Remediation efforts

CODE OF CONDUCT INCLUDES

TRAINING AND EDUCATION

COMPLIANCE PROGRAM


Litigation and Dispute Advisory

We work with organizations and their lawyers in judicial and alternative dispute resolution forums, across a range of jurisdictions, to help strengthen your case, at all stages of a business dispute or complex litigation.

Quantification of losses and

claims

Expert opinion and testimony

DISPUTE ADVISORY

Arbitrator services

Financial analysis

Business valuations

Buy-sell disputes

Computer Forensics

LITIGATION SUPPORT

Investigations Deloitte Discovery

Analytic and Forensic

Technology


Anti-Money Laundering Advisory

Financial institutions have come under unprecedented regulatory pressure to enhance their monitoring and surveillance systems with a view to preventing, detecting and responding appropriately to money laundering and terrorist financing.

We can help:

Our AML services also include:

• Develop or enhance your AML framework based on regulatory requirements and leading industry practices

• AML training for employees

• AML due diligence

• Assist in transaction look back exercise

• Implementation or enhancement of your transaction monitoring system

• Client on-boarding and remediation programs

Forensic analytics/ Deloitte DTect

Implementation and Enhancement of Transaction Monitoring System

Investigation

Review documents and arrive at facts

Review AML controls and framework


Identify. Investigate. Decide.

Stressed Asset Management

Due to the rise in fraudulent cases in India of how companies and individuals are misusing banking facilities and diverting funds for purposes other than for which the loan has been granted, banks need to ensure the effective monitoring of fund utilization and credit facilities being advanced.

What we can help you with:

Understand and Identify the Issues and key risk areas

Data CollationPerform Data

Analytics as well as a Forensic review

Carry out an Asset Tracing exercise and Background check

Quality controls and Reporting

Financial statement analysis

Understand the movement of funds

Accounting record review


Hindsight. Insight. Foresight.

Forensic Data Analytics

We look at an organization from the inside out - turning everyday information into useful and actionable insights for the business decision maker.

Our solution:

DTectSM our proprietary, customizable, technology-based anomaly detection methodology, can help organizations.

• Uncover active or past fraud that organization was hitherto unaware

• Analyze large amounts of transactional data, such as vendor payments, employee payroll and expense reimbursements, purchase card transactions, to identify anomalies/ red flags

• Compare data with external sources for verification

• Identify undisclosed relationships, say between employees and vendors, that may be potentially illegal or unethical

• Test for a variety of schemes and fraud, such as kickback schemes, fraudulent expense schemes, ghost employees, fictitious vendors, and others

• Visualization: Easily identifying the connections, patterns in disparate data with visualization tools


Digital Forensics/ eDiscovery services

eDiscovery: identifying, collecting and producing electronically stored information (ESI) in response to a request for production in a law suit or investigation.

DEVICES

1 . L ap tops / De sk t op s

2 . Mob i l e s / Tab l e t s

3 . Pen d r i ve s / Memo ry c a r d s

4 . W indows / L i nux / iOS

5 . C l oud / Remo te dev i c e s

6 . Ne two r k s e r ve r s

Digital Forensics: The science of finding, collecting, processing, analyzing and presenting electronically stored information (ESI) in a manner admissible as evidence in court or other proceedings.

• Evidence securing/ acquisition

• Forensic Investigation

• Exit Check

• Data Breach investigations

• Forensic First Aid

• Secure disposal

• eDiscovery and document review

SERVICES


Preventing sexual harassment at the work place

Anti-Sexual Harassment Advisory

Under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 an employer has certain obligations that he is required to fulfill:

• Constitution of an Internal Complaints Committee

• Conciliation

• Grievance redressal mechanism

• Inquiries into complaints

• Workshops and awareness programs

• Annual report

Draft policy and create a robust

Incident Response

Framework

Conduct ‘First Response

Training’ for ICC members

Conduct awareness

training programs or

workshops for employees

Employees’ ASH online training and survey for

compliance

Case Management

System for the Grievance Redressal

mechanism

Forensic Investigation

D E L O I T T E F O R E N S I C C A N H E L P

https://global.deloitteresources.com/ClientsIndustries/tmt/Pages/NerveCenter.aspx


What you will gain?

• Provide quality protection to your customers by ensuring that only authentic products enter the market

• Reduced risk of loss of reputation

• Know your suppliers/ vendors better

• Tailor made solutions to your current challenges

• Inputs from domain experts

• Discover the loop holes in your supply chain

• Control revenue losses caused by counterfeits and infringement of IP/ Trademark/ Copy rights

Brand Protection AdvisoryP

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AC

TI

VE

SE

RV

IC

ES R

EA

CT

IV

ES

ER

VIC

ES

Anti-trademark infringement

Anti-counterfeiting

Brand awareness programs

Anti-copyrights infringement

Intellectual property services

Supply chain fraud management

Brand protectionservices


Quantification of Damages

• Establish whether the client suffered damages due to competition law infringement

• Use econometric counterfactual analysis to quantify damages

Economics and Regulation | Anti-trust and Competition Advisory

Competition Compliance service

• Assist in developing an effective compliance strategy to minimize the risk of competition law infringements

• Assist strategic investors and private equity funds in conducting due diligence on targets to assess risks emanating from Competition Law non-compliance

Expert Witness

• Act as expert witnesses and testify on a wide range of business and financial matters

• Assist in screening, coordinating and preparing other expert witnesses

Investigations

• Assist in gathering evidence in compliance with DG’s information request

• Gather evidence to support filling of information with the CCI

Competition Economics

Combination Advisory

E-Discovery & Document review

Dawn Raids

• Examine definition of relevant markets, identify efficiencies associated with vertical agreements and assess market concentration

• Identify possible dominance in relevant markets and potential abuse of dominance

• Build econometric models to draw empirical inferences to quantitatively analyze anti-trust cases

• Assist in mandatory notification and in obtaining approval from the CCI in case of potential mergers

• Assist entities in defining the relevant markets, assessing market concentration and demonstrating the pro-competitive impact of the combination

• The Deloitte Discovery tool helps companies mitigate the risks associated with the discovery process

• Provide services related to data collection, processing, hosting, review and production.

• Assists clients in gathering evidence in a limited time frame

• Advise companies in preparing dawn raid guidelines including directions for preserving and managing key information

• Provide on-site training in handling a dawn raid


Identifying potential indicators of:

• Adverse reputation and integrity issues

• Complex ownership structure and undisclosed relationships

• Tax evasion and default on obligations

• Other such concerns

DUE DILIGENCE ON BIDDERS


• Potential diversion or siphoning of funds based on monitoring business transactions and payments

• Potential cases of non-compliances with the agreed resolution plan

COMPLIANCE AND MONITORING OF INSOLVENCY RESOLUTION PLAN

• Setting up a robust, compliant and monitored liquidation process

• Review of financial and accounting records to determine the appropriateness of complex accounting adjustments impacting asset valuation

• Monitoring fund distribution in compliance with the Code

LIQUIDATION ANALYSIS AND SUPPORT

Insolvency Advisory


• Preferential transactions

• Undervalued transactions

• Extortionate transactions

• Fraudulent or wrongful trading

FORENSIC REVIEW OF SPECIFIC TRANSACTIONS


• Process gaps in claims collation and review process

• Fictitious or inflated claims

• Discrepancies with accounting records

FORENSIC CLAIMS REVIEW AND ADJUDICATION


• Diversion

• Siphoning of funds

• Fraudulent or wrongful transactions

• Other such issues which are improper in nature

ASSISTANCE IN ONGOING MONITORING OF OPERATIONS


Forensic SDLC (Software development life cycle) governance

Large incidences of fraud were observed due to design/ deployment loophole in critical systems and applications that the organization relies on. This solution assists in mitigating such frauds. The below are the modular solution offering across the Software Development Life Cycle (SDLC) of an application.

• Source Code Review

• Review on SDLC Compliance

• UAT Review

• Data Analytics on Application Data

• Simulation of scenarios and Dry Run

• Assistance in Review or Drafting of Business Requirement Specification

• Assistance in Review or Drafting of Functional Specifications

• Review of interim outputs as per Functional Specification

• Parametrization and Threshold finalization

Design Deployment

Post Deployment

Post Facto (investigative)

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DU

LA

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• UAT Test covering scenarios resulting in frauds

• Patch Management

• Data Migration

Key Sectors

Telecom, Media, Technology, Financial

Services, Energy, Retail, Infrastructure

Key Systems

Billing, CRM & Provisioning, ERP, Payment

Gateways, Mobile Wallets, Network, Distribution


Revenue Fraud Management

Competitive environment across the industries is putting constant pressure on top line. In such scenarios it becomes extremely critical that the organization has a strong control over its revenue process to prevent leakages. This service addresses the above concerns of the organizations.

Our RFM Services include:

• RFM Review and Loss Quantification

• Develop or enhance your RAFM framework based on leading industry practices and current organizational maturity

• RFM Function deployment – process, technology, people (organogram) and shadow

• RFM Managed Services

• RFM training for employees

Coverage

Key Sectors

Telecom, Media, Mobile Wallets,

Ecommerce, Energy, Retail, Airlines

Product/ Services Configuration

Rate Configurations

Subscriber Provisioning/ Migration

Information Completeness for billing

Other breaches resulting in revenue loss-waivers/ collection/ recording


Fraud Management System Advisory

Most of the mature organizations are deploying Fraud Management System (FMS) in their Eco System in order to proactively detect frauds and respond. The success of such tools lies in the way they are customized and deployed. We provide FMS advisory in order to enhance the probability of successful FMS deployment. Below are our modular solution offerings :

Key Sectors: Telecom, Media, Financial Services, Energy, Retail, Infrastructure

• Assess current tool capability to mitigate frauds scenarios – coverage, effectiveness, responsiveness and closures

• Assist in evaluation and identification of relevant tool post based on capability, scalability, usability, cost and business objectives.

Modular solution

offerings

Capability Assessment Functional Design

Business RulesImplementation PMO (SDLC Governance)

Define exhaustive fraud scenario as per: • Industry • Organizations’ external and internal eco system• Demographic influence• IT/ Application eco system

• Review Design document prepared by Vendor /IT based on business requirement (BRD/FSD) shared

• Review Implementation project plan and monitor progress

• Parameter testing including source feed, transformation rules

• System Integration Testing• User Acceptance Testing

• Assist in defining capability roadmap

• Assist in converting business requirement into function specification documentation

• Assist in proposing customization


Why Deloitte


Deloitte’s Forensic practice in India

1

Have a long standing

working relationship

with regulatory

authorities

3

5

2

4

Sector-focused Forensic

practiceDrawing on in-depth sector

experience and forensic domain

knowledge on engagements

Collective Partner

Director experience of

over 350 person-years

Strong Business

Intelligence capability Ability to source information on

live and evolving business

situations in India

Marquee credentialsAppointed to conduct large

number of headline making,

high profile investigations in

India

KEY DIFFERENTIATORS

Some key differentiators


A unique balanced geographical presence

Global Forensic Professionals

O V E R 4 , 0 0 0 F O R E N S I C P R O F E S S I O N A L S

EMEAOver 50 Partners and 1,300 Practitioners

ASIA PACIFICOver 40 Partners and

800 Practitioners

AMERICASOver 80 Partners and1,900 Practitioners


Global recognition

Deloitte named a global leader in Forensic Investigation Advisory, based on capabilities, by ALM Intelligence | Source: ALM Intelligence; Forensics & Dispute Advisory 2016; ALM Intelligence estimates © 2015 ALM Media Properties, LLC

Deloitte named a leader in Worldwide eDiscovery Services based on capability and strategy by IDC | Source: IDC MarketScape: Worldwide eDiscovery Services 2017 Vendor Assessment by Angela Gelnaw, March 2017, IDC #US42255117e

Deloitte named a global leader in Disputes and Litigation Consulting, based on capabilities, by ALM Intelligence | Source: ALM Intelligence; Disputes and Litigation Consulting 2017; ALM Intelligence estimates © 2017 ALM Media Properties, LLC

Deloitte named the undisputed global leader in Business Intelligence by Forrester | Source: Forrester; The Forrester Wave: Business Intelligence Platform Implementation Service Providers, Q2 2017

Deloitte is a leader in Cybersecurity Consulting Providers based on depth and breadth of capabilities | Source: ALM Intelligence, Cybersecurity Consulting 2015; © 2015 ALM Media Properties, LLC

Deloitte named a global leader in Digital Forensics and Incident Response Services based on strategy & current offering by Forrester | Source: Forrester Research, Forrester WaveTM: Digital Forensics and Incident Response Service Provides, Q3 2017

Deloitte named a worldwide leader in Data Analytics Services, positioned highest in execution, based on ability to execute and completeness of vision by Gartner | Source: Gartner, Magic Quadrant for Data and Analytics Services, Worldwide, Jorgen Heizenberg, Neil Chandler, Twiggy Lo, 28 February 2018


350+ New Delhi

Mumbai

Pune

Hyderabad

Chennai

Bengaluru

Kolkata

Locations in India

ProfessionalsSpread across

8

An overview of the practice in India

Our team comprises of CAs, MBAs, CFEs, forensic accountants, computer forensic specialists, engineers, lawyers, journalists and professionals with law enforcement experience.

Nikhil Bedi Head of Forensic

Ahmedabad


A team of specialists dedicated to fight fraud

P A R T N E R S

D I R E C T O R S

Arjun R.Ajay Singh Amit Bansal

Nishkam Ojha

Rajat Vig

Jayant Saran KV Karthik

Rohit Goel

Rajesh Chawla

Sumit Makhija Wilfred BradfordRohit Madan

SaurabhKhosla

Himanshu Arora

Kavita Nathaniel

Sachin Yadav

AakashSharma

Aparna Gupta

ArchanaVenkat

Gaurav Mehta

VikasNagpal

Zubin Dastur

SouparnoBagchi

AmolMhapankar

Vivek Bhamodkar


A constant dialogue with our clients

Forensic practice

Focused communications and thoughts contribute to the strength of our relationships with our clients:

• Research and good practices on particular sectors and/ or industries

• Round tables and Webinars for companies’ executives

• Conferences on current news subjects, in-company seminars

Our array of Forensic India publications are available here

http://www2.deloitte.com/in/en/pages/finance/articles/deloitte-india-banking-fraud-survey.html

https://www2.deloitte.com/in/en/pages/finance/articles/thought-leadership-forensic.html

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.

This material has been prepared by Deloitte Touche Tohmatsu India LLP (“DTTILLP”), a member of Deloitte Touche Tohmatsu Limited, on a specific request from you and contains proprietary and confidential information. This material may contain information sourced from publicly available information or other third party sources. DTTILLP does not independently verify any such sources and is not responsible for any loss whatsoever caused due to reliance placed on information sourced from such sources. The information contained in this material is intended solely for you. Any disclosure, copying or further distribution of this material or its contents is strictly prohibited.

Nothing in this material creates any contractual relationship between DTTILLP and you. Any mutually binding legal obligations or rights may only be created between you and DTTILLP upon execution of a legally binding contract. By using this material and any information contained in it, the user accepts this entire notice and terms of use.

©2019 Deloitte Touche Tohmatsu India LLP. Member of Deloitte Touche Tohmatsu Limited

Documents

Forensic Helping you build an Ethical Enterprise · 2020-03-26 · investigations, ethics e-learning, etc. Deloitte Consultant 1 2 3 Whistle-blower contacts the Ethics Line (website,