POLOKWANE – International Fraud Awareness Week takes place from November 16 to November 22 this year.
During this week business leaders and employees are encouraged to take steps to minimise the impact of fraud by promoting anti-fraud awareness and education.
According to the International Consumer Protection and Enforcement Network, fraud awareness is critical at a time when organisations in South Africa and around the world lose an estimated 5% of their annual revenues to fraud.
Local media reported on several large fraud cases over the past year. These case were confirmed by provincial police spokesperson, Col Ronél Otto, who said they were reported and were being investigated.
These included:
• Nine senior managers working for the cooperative governance, human settlement and traditional affairs department were arrested for fraud in February.
• Two men were arrested for allegedly defrauding over 30 people of more than R200 000 in Limpopo in June.
• A 26-year-old man was charged with fraud involving more than R1,1 million, identity fraud for allegedly using a South African identity document fraudulently and allegedly contravening the immigration act in August.
Polokwane police spokesperson WO Lesiba Ramoshaba said incidents of fraud were a daily occurrence, and weeks like the Fraud Awareness Week were needed to create awareness.
He said there were some basic steps that businesses and organisations could take immediately to protect themselves against becoming victims of fraud.
These included:
• Be proactive. Adopt a code of ethics for management and employees. Evaluate your internal controls for effectiveness and identify areas of the business that are vulnerable to fraud.
• Establish recruitment procedures. When hiring personnel, conduct thorough background investigations. Check educational, credit and employment history (as permitted by law), as well as references.
• Train employees in fraud prevention. Ensure that personnel know basic fraud prevention techniques and know where it can be reported.
• Implement a fraud hotline. Fraud is still most likely to be detected by a tip. Providing an anonymous reporting system for your employees, contractors and clients will help uncover more fraud.
• Increase the perception of detection. Communicate regularly to staff about anti-fraud policies, ways to report suspicions of misconduct, and the potential consequences (including termination and prosecution) of fraudulent behaviour.
The national anti-corruption hotline for public services is a South African government initiative that ensures that all cases of alleged corruption and/or fraud are reported centrally and redirected to the relevant departments or provincial administration for further attention.
To report acts of corruption or fraud, dial the toll-free number 0800 701 701 or SMS 39772.
