The tax audit report for FY 2025-26 is due on 30 September 2026. Between now and then, most CA firms will move through hundreds of client files, and a fair share of those files include a bank statement that gets a quick visual scan before it’s filed under “verified.” That scan is where the problem […]
An account sits at ₹500 for six days, then a credit of ₹21 lakh lands and ₹20 lakh leaves within twenty-four hours. Nothing in that one line item breaks any law. Read it against nine or ten similar entries in the same statement, though, and you’re looking at the layering stage of money laundering, the […]
Precisa’s compliance and forensic clients tend to arrive at the same question a few months into using any automated AML (anti-money laundering) screening tool: now that the system flags suspicious transactions on its own, can we shrink the review team? The short answer is no, not entirely, and the reasons are more structural than they […]
A borrower’s bank statement shows a healthy credit history. No bounces, reasonable balances, steady inflows. The file goes to the sanction. What the reviewing team didn’t see: forty-six inbound UPI transfers across nine weeks from numbers with no identifiable source, each followed by near-complete withdrawal within 48 hours. UPI accounted for around 85% of India’s […]
The Reserve Bank of India’s Annual Report for 2024-25 recorded banking fraud at ₹36,014 crore, a near-tripling from the ₹12,230 crore reported the previous year. Over 92% of that value was tied to the loan portfolio. A significant portion involves financial statement fraud: borrowers inflate revenues, suppress liabilities, or misrepresent cash flows to secure credit. […]
QUICK ANSWER: The 10 critical red flags in bank statement analysis include: (1) Circular Transactions, (2) Document Metadata Tampering, (3) Running Balance Errors, (4) Sudden Large Deposits, (5) Fake Salary Credits, (6) Structuring, (7) EMI Stacking, (8) Bounced Payments, (9) First-In-First-Out Patterns, and (10) Template Mismatches. Red flags 1-6 indicate fraud (deliberate misrepresentation), while 7-10 […]
When a borrower submits a loan application, two financial documents typically make their way through your process. The financial statements tell you what the business claims to have earned and spent. The bank statements tell you what the account actually recorded. When either document is fraudulent, the investigation that follows looks completely different because the […]
When a company’s Mumbai office transfers ₹50 lakh to its Bengaluru branch for operational expenses, that’s standard business practice. When the same ₹50 lakh cycles through three related entities and returns within 48 hours whilst appearing as “sales revenue” on loan applications, that’s fraud. According to PwC’s Global Economic Crime Survey, 59% of Indian organisations […]
Designed for high-value, real-time transfers, RTGS transactions are irreversible. Once money leaves an account, recovery is difficult. This means RTGS transactions are a prime target for fraudsters. For instance, in October 2025, a major scam happened in Mumbai. A victim was duped of Rs 58 crore via RTGS into various accounts under the pretext of […]
Financial fraud detection is a complex and challenging task, whether you are a lender, forensic auditor, or compliance officer. Despite staying vigilant, fraudsters often find ways to circumvent systems and defraud the financial system. The Reserve Bank of India (RBI) reports a decrease in fraud cases, dropping to 23,953 in 2024-25 from 36,060 the previous […]
