News

Internal payments fraud on the rise and costing SA businesses

South African businesses, already under severe economic strain, are now counting the costs of rapidly increasing internal payments fraud. According to Ryan Mer, Managing Director, eftsure Africa, a Know Your Payee™ (KYP) platform provider, the number of recent high-profile cases before the courts only partly reflects the true scale of the problem.

Estimates suggest that it costs the private sector more than R2 billion every year to combat theft and fraud. According to a PWC report, South Africa was ranked as having one of the worst white-collar crime rates in the world. A similar study conducted by the Association of Certified Fraud Examiners found that a typical organisation loses at least 5 percent of its annual revenue to fraud. The same study also found that once victimised, an organisation is unlikely to recover the losses. “Not only do South African businesses have to contend with the threat of external bad actors, but the relatively high likelihood of payments fraud being committed by an entity’s own staff,” says Mer. 

He adds that while the amount of business transactions taking place online is constantly growing and working from home is now commonplace, business controls have not kept pace with digital transformation. This has led to increasing demand for security and anti-fraud solutions.

Positions that involve administering payments to creditors and suppliers, overseeing and processing invoices and electronic payments, and capturing bank statement transactions present a higher risk for businesses. “It’s crucial organisations implement best practice anti-fraud strategies to prevent, detect, investigate and remediate fraudulent activity before it becomes so serious it endangers the very survival of the business.”

Mer points out that a recent case of an East London personal assistant being jailed for 15 years for stealing R11.5 million from her employer highlights that many organisations are too complacent by not implementing enough measures to tackle internal payments fraud. “Often, businesses tighten certain payment approval policies without implementing a longer-term strategy and the necessary technology to truly make an impact. Despite an overwhelming majority of businesses having vendor onboarding, management and payment controls in place, cybercrime and payment fraud is a daily occurrence and a massive challenge for businesses. While the right controls might be in place theoretically, clearly definite gaps that need to be addressed” he says. 

Another hurdle organisations face is that those responsible for reviewing and releasing payments, such as CFOs, financial managers, senior managers, and directors, are under huge time constraints and don’t have capacity to check packs of supporting documents in detail on a regular basis or verify all banking details. At its core, eftsure helps protect organisations against financial fraud by automating manual controls, placing less reliance on the manual and human factor, giving those responsible for releasing payments confidence that processes and controls are in place and working effectively prior to releasing payments.

In addition to understanding the risks of internal fraud and boosting existing security, Mer advises businesses to invest in tech solutions with sufficient audit logs built in so that every action performed is recorded and can be traced back to the staff member responsible. “This is where eftsure’s automated check, with the click of a button, gives those responsible comfort in seconds as to the integrity of the payment information, prior to payment release, he says.”

“People combined with technology and sound business processes are at the frontline of fighting fraud and mitigating risk. By building a culture of security within an organisation that ensures cooperation between employees and technology, it is significantly more difficult for bad actors, both external and internal, to commit white-collar crime,” says Mer.

Leave a Comment

Your email address will not be published.

You may also like

Business Finance Fintech Gadgets Security Society Software Trends

Global Cybersecurity Breach Exposes Critical Vulnerabilities,Experts Said

post-image

 

By Anthony Emeka Nwosu, Tech and Biz News NG

A massive cybersecurity breach, now referred to as the “SolarWinds” attack, has revealed significant weaknesses in global software supply chains, causing widespread damage to numerous countries and organizations, with financial losses estimated in the billions of dollars.

Origin and Mechanism of the Attack

The breach originated in the United States, targeting SolarWinds, an IT management software provider. A state-sponsored hacking group, believed to be from Russia, infiltrated SolarWinds’ Orion software platform. The attackers managed to insert malicious code into routine software updates, which were then distributed to approximately 18,000 SolarWinds customers. This highly sophisticated technique allowed the hackers to access the networks of numerous organizations undetected for several months.

Impact and Scope

Speaking on the impact , Bonny Mekwunye,the Vice President of Kecaam Technologies Ltd, an IT firm in Lekki, Lagos said “The attack has had a profound impact. Among the most notable victims are…

Read More
Business Government

NNAJI COMMISSiONS 7TH NOTAP/PZ UPGRADED CHEMISTRY LABORATORY AT FUTA….CALLS FOR PRIVATE SECTOR SUPPORT TOWARDS R&D

post-image

 

The Hon. Minister of Innovation, Science and Technology Chief Uche Geoffrey Nnaji has commissioned the seventh NOTAP/PZ Upgraded Chemistry laboratory at the Federal University of Technology(FUTA) Akure, Ondo State.

Performing the ceremony, the minister represented by the Director General of the National Office for Technology Acquisition and Promotion(NOTAP) Dr. Barr. Obiageli Amadiobi said the project is a result of the strategic partnership between NOTAP and PZ Cussons Nigeria Plc. aimed at strengthening technology acquisition and research in the country.

He said that during NOTAP monitoring exercise as a regulator of technology transfer, it observed many inadequacies and disconnect between industries and the National Innovation System(NIS).

This according to him led to a lack of confidence in our graduates and their research capability by the industries which resulted in the absence of any indigenous Research and Development (R&D)results being used in any of the numerous industries in Nigeria.

Chief Nnaji noted that in order…

Read More
Announcements Business Finance Fintech News Software

Anambra Billionaire ,BLord Resumes Work on His Mobile App, Promises Enhanced Customer Service

post-image

The young and dynamic Anambra billionaire, Blord Linus William, has resumed work at his office in Awka, much to the delight of his supporters and customers.

In a recent statement, Blord emphasized the importance of his customers, whom he regards as the cornerstone of his success. He assured users of his Apps that any unresolved issues will be promptly addressed by following the provided instructions. “Every customer is a king,” Blord stated, expressing his deep gratitude for their continued patronage.

Blord also took the opportunity to clarify recent controversies, highlighting that many of the negative claims come from individuals who have never used his Apps. He urged genuine users to share their positive experiences and continue supporting his ventures.

The resumption marks a new phase of improved customer service for Billpoint and Jetpaye Apps. Blord reassured users that while occasional glitches may occur, they will be swiftly resolved to ensure a seamless…

Read More
Agriculture Business Economy Environment Government Travels Trends

Governor Soludo Launches Environmental and Economic Tree Planting Campaign in Anambra State

post-image

 

Governor Charles Chukwuma Soludo of Anambra State has initiated a major tree-planting campaign aimed at improving the environment and reducing the state’s carbon footprint. The campaign, which spans the capital city and other parts of Anambra, marks the third phase of the state’s economic tree distribution program.

During the inauguration of the campaign, Governor Soludo highlighted the success of the initiative’s previous phases. “We have successfully launched the third phase of distributing economic trees and seedlings to more households in Anambra State. In the last two years since the launch of our Palm and Coconut revolution, we have distributed over 1.1 million improved seedlings of palm and coconut trees to about 130,000 households in the State,” he said.

The governor also announced the expansion of the program with the addition of 700,000 more oil palm seedlings and other economic trees. These include 200,000 Ukwa seedlings, 50,000 Akilu seedlings, 50,000 Oji Igbo…

Read More
Announcements Business Society Software Technology Trends

Greenhouse Technologies Expands Digital Footprint with New Web Deployment for Nigerian Diaspora in Europe

post-image

 

Victor Nwadinobi, CEO of Greenmouse Technologies, an innovative indigenous ICT firm based in Ikeja, Lagos, recently discussed the company’s latest web deployment project aimed at the Nigerian diaspora, particularly those residing in Europe.

In a recent media briefing, Nwadinobi elaborated on the significance of this initiative. “We have worked diligently on a web application project that unites all Igbo unions in Germany,” he stated. “This web portal, named Ndi Igbo in Germany, is designed to efficiently manage all members through a comprehensive backend dashboard.”

This platform is more than just a digital space; it represents a significant step in connecting the Nigerian community abroad, providing a seamless means for cultural and social engagement. Greenhouse Technologies’ efforts are breaking new ground, transcending geographical borders and reinforcing connections among Nigerians living in Europe.

Nwadinobi emphasized the company’s commitment to leveraging technology to foster unity and community…

Read More
Art Business Sports

Nico Williams: Honoring His Mother’s Legacy

post-image

 

Barcelona’s pursuit of Nico Williams is nearing completion. The 22-year-old has agreed to personal terms with the La Liga side, bringing him one step closer to joining the prestigious club. Athletic Bilbao’s release clause for Williams stands at £45 million, and despite Barcelona’s need to offload players, the deal is almost finalized. This week is crucial as Nico prepares for his medical evaluation.

Reflecting on his journey, Nico Williams shared a touching tribute to his mother, who undertook a perilous journey from rural Ghana to Spain, crossing the Sahara Desert to ensure a better future for her family. “I run very fast, but I can’t run as fast as my mother,” Williams said. “She once escaped death and crossed the Sahara Desert to become who I am today. I gave the medal to my mother because she deserves it more than anyone…

Read More
Business Sports

LAMINE YAMAL: BEWARE THE IDES OF MARCH

post-image

 

The world, like a football, is at Lamine Yamal’s feet. He is that powerful—at least at this moment. And as in his brilliant goal in the semifinal cracker against France in the just concluded Euros, he could do anything with the ball: he can cut inside to his right, and/or cut outside to his left before pulling a magnificent shot into the net, leaving Adrian Rabiot helpless, Mike Maignan clueless, and the scrambling crowd of Spanish fans breathless. At that instant, the legend of young Yamal went into the second act, and everyone who had doubts, reasonable or not, buried them.

Before that picture-perfect equalizer, an unbelievable set of pictures had flooded and broken the internet. In what was later verified to be a 2009 UNIICEF shot, a young, long-haired Lionel Messi was shown bathing and cradling a baby, and in another frame flanked by an equally young mum. The…

Read More
Business Culture Government

President Tinubu Appoints New Head of Civil Service of the Federation

post-image

 

President Bola Tinubu has approved the appointment of Mrs. Didi Esther Walson-Jack, OON, as the new Head of the Civil Service of the Federation, effective August 14, 2024.

Mrs. Walson-Jack, who was appointed as Federal Permanent Secretary in 2017, has an extensive background serving in various Ministries. She will succeed the incumbent Head of the Civil Service of the Federation, Dr. Folasade Yemi-Esan, CFR, who is set to retire on August 13, 2024.

In his announcement, President Tinubu expressed his gratitude to Dr. Yemi-Esan for her dedicated service and stewardship. He also tasked Mrs. Walson-Jack to bring innovative flair, integrity, and strict adherence to the existing rules and regulations of the Civil Service in her new role.

The appointment marks a significant leadership change within Nigeria’s Civil Service, reflecting the administration’s commitment to fostering effective governance and public service excellence.

Read More