INTHEBLACK August 2025 - Magazine - Page 27
“AI can, for instance, help flag shared accounts and duplicate
payments, but in the end, it’s usually a person that is close
to the process who spots what doesn’t add up.”
JEFFREY LUCKINS FCPA, WILLIAM BUCK
Gallo agrees that culture is often the most
overlooked part of any prevention strategy.
“Organisations invest in tools and tech,
but if employees feel disengaged, isolated
or mistreated, all that investment becomes
secondary.”
A DUTY TO ACT
Even after fraud is uncovered, some
organisations choose not to pursue charges.
“Some businesses quietly let offenders go
to avoid reputational damage,” Gallo says.
“But we’ve seen the same people resurface
elsewhere and do it again. Choosing not
to report merely delays consequences and
often magnifies them.”
Carr agrees. “Reporting isn’t just
compliance — it protects the whole sector.
Fraud doesn’t stay internal; it spreads. Today,
staying passive isn’t an option; there’s a
proactive duty to act.”
Whistleblower protections and
reporting obligations highlight the ethical
considerations for reporting internal fraud
in Australian companies. However, Carr
cautions that these structures must be robust.
“False accusations can damage trust.
That’s why strong whistleblower protections
and independent hotlines are vital.”
EVERYONE PLAYS A PART
While management holds primary
responsibility for implementing fraud
controls, detection is shared. “Fraud
prevention is a team sport,” Gallo says.
“Everyone in the organisation, from
entry-level staff to the board, has a role.”
Carr urges businesses to make fraud
awareness part of onboarding and everyday
culture. “Make it part of the everyday
conversation. Help staff recognise fraud
and report it confidently.”
That education can be powerful.
Gallo recalls a case where a small red flag
raised by one employee led to the discovery
of a A$14 million fraud.
“The discloser didn’t know what was
wrong, just that something wasn’t right,
and pushed their point. That gut feeling
cracked the whole thing open.”
PREVENTION STILL BEATS CURE
Despite the rise in advanced frauddetection tools, all four experts agree:
prevention remains the most effective
and affordable approach.
“Education is the cheapest and most
effective strategy,” Gallo says. “We’re
unpacking a case that started with a bogus
vendor and weak controls. If someone had
asked a few questions early on, it wouldn’t
have happened.”
For small and large businesses in Australia,
fraud-detection best practices must balance
affordable tools with strong cultural and
governance foundations.
“The best organisations are the ones
patching the cracks before anything leaks,”
Stuart says. “Fraud doesn’t just disappear —
it finds the gaps.” ■
READ
an article on
how to prevent
payroll fraud
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