India Braces for Surge in Financial Crime Risks by 2025: Kroll Report Highlights Alarming Trends

The 2025 Financial Crime Report by Kroll finds 96% of Indian financial executives anticipate rising financial crime risks, primarily driven by cybersecurity threats, AI advancements, and regulatory challenges. Despite these risks, only 36% regard their compliance programs as adequate. The report urges better governance and tech investment to combat these threats.

Kroll, a global leader in financial and risk advisory, has issued the 2025 Financial Crime Report, revealing that an overwhelming 96% of Indian executives foresee heightened financial crime risks. This is notably higher than the global average of 71% and highlights the urgent need for improved compliance measures within India's financial sector.

Cybersecurity, artificial intelligence, and regulatory challenges are spotlighted as principal drivers of these risks. Alarmingly, only 36% of organizations believe their compliance programs are effective, with many citing inadequate technology and weak governance as critical issues. The report stresses the need for investment in these areas to mitigate potential threats.

The reliance on AI continues to grow, with 68% of respondents acknowledging its potential benefits to financial compliance. However, 52% view AI as a risk, illustrating the complex landscape companies must navigate. Bolstering compliance programs is crucial, particularly in light of dynamic geopolitical risks and evolving regulatory demands.

(With inputs from agencies.)