New data released by Medius, a global provider of cloud-based accounts payable automation and spend management solutions, reveals the extent of internal fraud that goes unreported for fear of retaliation.
More than half (56%) of the surveyed financial professionals in the UK and US have spotted or suspected internal fraud in their workplaces yet four in five (81%) stayed silent. When asked why, 45% of professionals cited the fear of recrimination.
Concerns of repercussions are vindicated – the survey reveals the extent to which financial professionals in the UK and US have witnessed negative consequences for whistleblowers firsthand:
- 59% have seen whistleblowers subsequently left out of important decisions
- 33% have seen whistleblowers moved to a different team
- 32% have heard whistleblowers called derogatory names behind their backs or directly to their face
When asked what would encourage them to flag suspicious activity, 93% of workers surveyed would feel more comfortable doing so if they had more evidence, yet nearly half (48%) said the legal system simply does not adequately protect whistleblowers.
Commenting on this, Medius CEO, Jim Lucier, said: “White collar crime is on the rise and no organisation is safe. Employees are the last line of defense against fraud but confidence to report suspicious activity is declining. AI anomaly-detection technology can provide employees with the evidence and assurances they need to be more forthcoming. Building a culture where employees feel comfortable to report their suspicions could save organisations millions in the long-run.”
Medius works with over 4,000 customers across 102 countries and processes $200 billion in annual spend. It uses the power of AI and automation to detect fraud the moment invoices are submitted safeguarding against bad actors and potential threats, internal and external.
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By GlobalDataSherron Watkins is the former vice president of Enron Corporation who alerted the CEO to accounting irregularities, warning the organisation “might implode in a wave of accounting scandals.” Watkins received national acclaim for her courageous actions and TIME magazine named her along with two others as their Persons of the Year in 2002, calling them simply “The Whistleblowers.”
Watkins said: “When someone is troubled by corporate wrongdoing and they attempt to sound the alarm, the pathway is uncharted, things happen organically. Normal rational people speak about their concerns with their closest friends and work colleagues, who often suggest staying safe saying ‘keep your head down, if you must report, go soft, nothing black and white.’ Yet black and white evidence is what is needed to get the attention of those in power, either internally or with media or outside watchdog groups to prevent or stop fraudulent activity.”