When faced with a fraud allegation or suspicious behavior, the decision to investigate is crucial. Launching an investigation becomes necessary when there’s a reasonable factual basis to believe that fraud has occurred, potentially violating laws, regulations or company policies.
In South Africa, lifestyle audits play a crucial role in the battle against fraud and corruption. These audits are anything but arbitrary; they are strategic, designed to unveil unexplained opulence that may be linked to fraudulent activities.
Fraud risk assessments involve the process of identifying and addressing a company’s vulnerability to both internal and external fraud. Once a risk has been identified, a plan is then developed to mitigate those risks by instituting certain procedures and assigning individuals to monitor and effectuate the plan of mitigation.
Fraud can have a devastating impact on businesses, so it’s crucial for business owners to be proactive in preventing and detecting fraud. Here are some common red flags of fraud in a company and tips on prevention:
Payroll fraud is a serious threat to businesses in South Africa and there are a number of ways in which fraudulent activities can occur.
Fraud is a very serious matter, but a well-structured and organised fraud risk management policy diminishes your chances of losing an enormous amount of money due to erroneous number-crunching or an inside job.
The extravagant lifestyle of an individual within a company will attract attention, especially if the person is employed in a position if trust. This is then reason for concern that fraud indicators are present. Proper controls, procedures and systems may reduce the risk of fraud but will assist in detecting it.
Non Profit Organisations can be attractive targets for fraudsters. People who are passionate about their missions are naturally trusting of those who share the same interests as them. Unfortunately NPO\’s are more susceptible to fraud because they do not have the resources to help prevent fraudulent activity from happening within their NPO. Below are a …
Consumer fraud occurs when a person suffers from a financial or personal loss. The fraud can involve the use of deceptive, unfair, misleading, or false business practices. Here are some of the most common frauds that victimise consumers. Identity Theft – Identity theft occurs when someone steals your personal information which can include your name, ID number, bank …
All businesses, regardless of their size are susceptible to invoice fraud. Even a few fake invoices could result in thousands, if not millions of Rands of losses. Invoice fraud is when a person notifies your company that your supplier payment details have changed and provides you with alternative details in order to defraud you. These people …