Fraud and theft appear to be democratic – they treat everyone the same! Not only the business world in the widest sense, but also clubs, foundations and (semi-) official bodies are regularly the victims of these phenomena.

Via the media little is known about the extent of fraud experienced by the business world. We compare fraud to an iceberg: only the smallest part is visible, the greater part is hidden. Now and then rumours of fraud surface, often without the victim company having divulged any information. Most frauds are dealt with inside the company without the intervention of the authorities. We call this ‘silent fraud’. In these cases, discretion is a must.

Signals

Often internal theft only comes to light after unexplainable losses, or through internal or external controls, or because management receives an anonymous message. Questionable expenses declarations, deviant patterns in the use of time, clients with a preference for a particular employee, are not normal occurrences and should be  investigated. Also continual stock differences, reports of thefts from pockets and purses, and also the offering of company products by non-customers at reduced prices are signals of internal theft. Recognising signals, of which we have named only a few, is the first step to resolving the problem. It is time to act.

Management often wait too long before taking action, thinking that the perpetrator will spontaneously give up when they have enough or that it is someone outside the organisation.  This is wishful thinking. In practice a thief or fraudster only stops after intervention. In most cases the fraudster is an employee and often one who has been in the company’s service for some years. And in practice the extent of the theft and fraud increases over time. Depending on the function of the dishonest individual, it is only a question of time before they help themselves to company money, goods or data, or misuse company time.

How long can management permit this sort of situation to continue before they take action? Fraudster and thieves do not stop spontaneously. Often details are known, or at least suspected, within the organisation but people remain silent out of a misguided sense of loyalty, or uncertainty. If staff know that management are aware and do nothing there is uncertainty regarding norms and values, and  that can be very damaging.

Finding out the truth

A well executed investigation can establish the facts of the matter. Our employees have the expertise. Finding the truth is the aim so that the company’s interests can be protected or it can be established the cause of the problem is other than fraud.

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