Why is Whistle Blowers a must for every organisation?

 

  • Whistleblowing is consistently the most common detection method, by a significant margin, for cases of occupational fraud.
  • The longer frauds last, the more financial damage is caused, therefore proactive detection measures, such as a whistleblowing hotline, are vital in detecting frauds early and limiting company losses.
  • 43% of fraud is uncovered by whistleblowers.
  •  The smallest organisations tend to suffer disproportionately large losses due to occupational fraud.
  •  77% of the frauds are committed by individuals working in one of seven departments: accounting, operations, sales, executive/upper management, customer service, purchasing and finance.
  • Companies typically lose 5% of their annual revenue to fraud, which works out to well over R23-trillion a year!
  • 33.3% of cases were reported without a hotline service. 51% of cases were reported through hotline services.
  • 43.8% are living beyond their means, 33.0% are experiencing financial troubles, whilst 21.8% have unusually close association to vendors and/or customers.
  • 39.1% of reported cases are dealt with internally, while 60.9% of reported cases are referred to law enforcement to be solved.
  • Accordingly to world renowned fraud, corruption and investigation expert, Michael J. Comer, 25% of employees would steal, 25% would never steal and 50% could go either way depending on the culture of the organisation.

Whistle Blowers (Pty) Ltd – drawing all employees into the crime fighting fold.

 

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