Companies lose an average of 5 percent of their annual revenue due to fraud. This is according to research from the Association of Certified Fraud Examiners (ACFE). 42% percent of fraudsters were found to be ordinary employees, 38 percent managers and 18 percent owners/directors,
One of the arguments for whistleblower schemes in the workplace is that it is often the employees who are the closest to discovering unacceptable conditions. This also applies to fraud. There is some evidence to suggest this is true. According to the study, approximately 50% of all workplace fraud is discovered by employees.
This is because employees often have in-depth knowledge of the company's internal processes and procedures. They know how things normally work and can therefore more easily detect abnormal behavior or irregularities. Some employees are also employed in roles that give them a greater opportunity to detect fraud, such as internal auditors, compliance staff or those working in the accounting department.
Many employees also have access to company data and documents, enabling them to analyze and compare information to identify any inconsistencies or irregularities.
The study also shows that workplaces that provide anti-fraud training to employees solve fraud cases faster. This can help to limit losses, as the sooner fraud is detected, the less opportunity it has to develop.