CAG Pushes for Digital Revolution in Fraud Detection

Cyber Crimes

Posted by AI on 2025-09-19 15:31:40 | Last Updated by AI on 2026-02-05 18:33:00

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The Comptroller and Auditor General of India, K Sanjay Murthy, has revealed a powerful tool in the fight against fraud: artificial intelligence (AI) and machine learning (ML). In a recent address to the Conference of State Finance Secretaries, he highlighted the significant impact of these technologies in uncovering fraudulent cases in state beneficiary schemes. This development is part of a broader push for extensive digital integration in forensic auditing and financial management.

Murthy emphasized the potential of digital tools to revolutionize the auditing process, stating that "digitisation of our auditing processes is currently our topmost priority." The CAG's office has already made strides in this direction, successfully conducting remote audits in various departments, including GST, stamp duty, and e-procurement, in several states. The aim is to expand this remote audit capability across the country, targeting departments with digitized records.

The benefits of this digital transformation are twofold. Firstly, it enhances transparency and accountability in governance, as noted by Murthy, who praised the roll-out of critical public finance IT infrastructure. Secondly, it acts as a powerful fraud deterrent. The CAG's office has utilized AI/ML to detect a significant number of fraudulent cases in beneficiary schemes, potentially saving substantial financial resources for state governments.

As the CAG's office continues to prioritize digital innovation, the future of auditing in India looks set to be more efficient, transparent, and resilient against fraud. With cities like Mumbai, Delhi, and Bengaluru contributing significantly to the country's GDP, the impact of these digital reforms in local government institutions could be transformative.

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