JOHANNESBURG – Incidents of fraud are on the rise in South Africa, with statistics by the South African Fraud Prevention Service indicating that new fraud listings had increased by 56 percent in 2017.
In light of International Anti-Corruption Day, which falls on December 9, 2018, all businesses should take some time to ensure that they have robust anti-fraud mechanisms and controls in place.
This is according to Keeran Madhav, Director of Forensics at Mazars, who points to a 2018 global study on occupational fraud and abuse, released by the Association of Certified Fraud Examiners (ACFE), which found that nearly half of all fraud incidents were made possible by weaknesses in the internal controls of the businesses being targeted.
Madhav said one of the main reasons why a company’s anti-fraud controls may be weak, is because the controls are not proactive or robust enough.
“Being proactive means that the company puts measures in place that detect fraud before any visible warning signs present themselves. This includes conducting surprise audits, and instituting a fraud hotline, conducting fraud risk assessments and proactive data monitoring, for example. The median loss of company’s who implemented anti-fraud controls were on average 12 to 56 percentage lower.