Skip to main content

Firstly, who is an ‘insider’?

An insider is a person – employee, contractor, or business partner – who enjoys your trust and authority for certain functions but uses that authority for unauthorised actions.

In 2024, consider reviewing your processes and policies to prevent insider fraud, including looking at the extent of authority provided to insiders.

Here are some pointers:

  • Circumstances and technology will change in 2024 so review your fraud risk.
  • Have a response plan in place, tested by a fraud investigator and labour law professional.
  • Make sure that your policies are crystal clear, above reproach and enjoy the full support of the executive team.
  • Understand red flags which can range from absenteeism, long hours, behaviour, performance, and lifestyle.
  • Provide ethics and compliance training while ensuring that both employees and suppliers understand your company values, and what you stand for.

Having clear company values which employees embrace can lead to brand-loyal employees exposing fraud or dishonest behaviour. You must also have a clear whistle blower policy in place which prevents victimisation.

Fraud not only brings financial loss but also impacts on your credibility in the market, particularly when you have access to client and supplier data. Insider fraud can also demotivate employees, especially when the perpetrator was respected and well-liked and trusted by colleagues, clients, and suppliers.

Contact Mubesko Africa to review your insider fraud prevention measures and meet our head of Fraud Examination Smartryk Calitz, acknowledged by ACFESA (Association of Certified Fraud Examiners South Africa) as South Africa’s number one Certified Fraud Examiner 2023.