Cyber Fraud, Vendors & Third Party Infiltration into

Organisations

Jenny Reid7th Annual Audit, Risk & Governance Africa

DECEMBER 2012

47% companies conduct employee screening

18% growth in past 2 years

EMPLOYEE SCREENING •6% = criminal record•20% = bad credit report•13% = invalid drivers license•14% = fraudulent school leaving qualifications•22% = fraudulent tertiary qualifications

18% of corporate security incidents on company property conducted by employees

ASIS International Security Director survey (February 2012)

But ……

.

Collusion

Vendor Fraud

Procurement verification procedures

•Fraudulent documents submitted with tenders.•Close relationships with suppliers and staff.•Fraudulent addresses

0102030405060708090

10096

7361

3557

70

4

2739

6543

30

YES (%)NO (%)

IFACTS VENDOR FRAUD SURVEYJuly 2012

Existing employees

Past employees

Outsourced / temporary employees

Key personnel in

suppliers

Potentials employees

FraudPreventionDatabase

Executive

Security /

Loss Control

HR Procurement