Cyber Fraud, Vendors and Third Party infiltration into organizations

1. Cyber Fraud, Vendors &
Third Party Infiltration into
Organisations
Jenny Reid
7th Annual Audit, Risk & Governance Africa
DECEMBER 2012

2. 47% companies
conduct employee
screening
18% growth in
past 2 years

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

4. 18% of corporate security
incidents on company property
conducted by employees
ASIS International Security Director survey (February
2012)

7. .

11. Procurement
verification
procedures

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

13. IFACTS VENDOR FRAUD SURVEY
July 2012
96
100
90
80 73 70
65
70 61
57
60
50 43
39
35
40
27 30
30 YES (%)
20 NO (%)
10
4
0
Does your Are the documents Does your Does the Is the employee Are contractor /
procurement presented to the procurement procurement screening policy of supplier documents
department ask for procurement department ask department insist contractors assessed verified during their
specific documents department every whether any that employees of by your company to contract time with
when a supplier verified to ensure suppliers are related contracting ensure that your your company?
wants to provide that the information or associated to companies are company’s risk is
services to your presented is true employees? subjected to taken care of?
company? and correct? employee
screening?

14. Existing
employees
Potentials Past
employees employees
Fraud
Prevention
Database
Key Outsourced
personnel / temporary
in suppliers employees