Zondo Commission Report Warns More
Companies at Risk Without Due Diligence

It’s certainly no surprise to hear that white-collar crime is on the increase in South Africa. Representing one of the most serious threats to the stability of a company, white collar crime has the potential to cause catastrophic financial consequences for any business. As economic conditions tighten and more South Africans struggle to meet their financial obligations, fraud, corruption and money laundering are becoming tempting options for many.

So how can companies protect themselves from these very real threats? The Zondo Commission issued very clear recommendations: companies across all sectors need to continually carry out risk assessments, due diligence procedures, and follow controls relentlessly. Staff and potential new staff members, customers, and supply chains must be screened to help companies understand their vulnerabilities, and use the available tools to detect irregularities.

Servaas du Plessis, CEO, XTND believes that risk management in the current era and business environment can only be effective with a proactive approach using proactive solutions. We have built and developed some of the foremost and most formidable fraud detection software systems and models over the last decade.

Insurance companies and medical aid providers are classic examples of institutions that constantly face a high risk of fraudulent activity. ‘VERITAS’, XTND’s web-based analytic tool, was specifically built to identify high risk claims across all insurance sectors. Utilizing sophisticated machine learning and adaptive technology, the model automatically filters insurance claims based on historical and existing claims, plus other data, to pinpoint ones that are possibly fraudulent. They believe institutions can adapt faster than fraudsters by employing cutting-edge tools and making fraud prevention an integral part of every point in the transaction chain.

Current statistics reveal that ghost employees and conflicts of interest are two of the greatest threats to businesses, and in creating a functional detection solution, XTND has developed their own fraud models to identify ghost employees, conflict of interest, and other payroll irregularities as well as vendor systems. They offer companies a free “Health Check” to interrogate and evaluate the cyber maturity and risks in disparate business data through the Enterprise Insight Analysis System (EIA), and are able to customize and develop new models as required to visualize risks in data in real time.

“The truth is that most people in an organization are under pressure, and it may not even be obvious to their superiors or coworkers. Opportunities for deception can tempt people under the influence of factors like debt, drug abuse, and high medical costs, as well as the greed linked with social inequality.” – Servaas du Plessis.

For PR information contact:
Nicola McGowan
082 459 1143