(FREE) India’s Central Bureau of Investigation (CBI) has revealed the manner in which the Satyam Computer Systems fraud was engineered.
The CBI used cyber-forensic techniques to discover how the Indian software company generated false invoices to show inflated sales. Investigations revealed 7,561 fabricated invoices worth $1.04 billion hidden in the company’s invoice management system. They were hidden from all divisions, except sales and finance, and not dispatched to clients.
The false invoices were generated to inflate sales and 6,603 invoices, worth $962 million, had already been entered into the accounts.
The Satyam scandal came to light in January when the company’s founder and chair Ramalinga Raju wrote to the board, admitting to fraud totalling more than INR7,000 crore ($1.44 billion).
Price Waterhouse was Satyam’s auditor at the time.