When assessing an organization’s fraud risks and designing anti-fraud controls, it is important to remember that fraudsters typically act when an opportunity arises. One of the most growing phenomena’s that XTND is currently investigating is ghost employees. Millions are stolen yearly by employees creating and paying ghost employees. This problem is easy to identify and address by applying a few basic checks and searches. As mentioned above the biggest detection of white-collar crime is done by means of whistle blowing or tipoffs.
Current Whistleblowing legislation in South Africa, The Protected Disclosures Act, Act 26 of 2000 only requires listed companies to have some sort of Whistleblowing solution with no real guidelines. Due to “toothless” nature of this act most listed companies creates an internal solution that is not really conducive to the spirit of whistleblowing. Adhering to this requirement is more seen as ticking a tick box than creating it for a solution.
Occupational fraud is a reality in South Africa and research has found that losses vary from an average of 5% in corporates to almost 20% in SME’s. All businesses need to realize and understand the value of a reputable whistleblowing solution. The utilizing of a good whistleblowing solution should not be enforced by any Act, it should be every business’ responsibility to do their part in eradicating occupational fraud and corruption.
Using the latest technology XTND has created a simple and inexpensive whistleblowing mobile Application, ExposeIT, which can be tailored for any business. This solution uses technology and not the traditional call centers as the traditional ones do.