Why is whistleblowing important for your business?
Fraud is a serious issue. It can happen to any company, no matter how big or small.
Whistleblowing is where a worker reports wrongdoing or abuse discovered at work (which includes i.a. criminal offences, environmental damage and health and safety threats) in order to protect the public. Whistleblowing system is an effective tool to combat fraud and it’s important for organisations to have mechanisms in place that allow employees to report wrongdoing without any fear of retaliation.
The ACFE Report found that the most common detection method for fraud was tips (more than 40% of cases). The same report also shows that fraud losses were about half smaller at organisations with whistleblowing hotlines than those without. This means that whistleblowing services are essential if you want to protect your business from fraudsters. Most Whistleblowers are employees who are often close to the action and have the most important information, which is vital to uncover the misdemeanor.
When you encourage whistleblowing, you can reduce the risk of being defrauded and save money on expensive internal investigations. You also protect your company from bad press and negative publicity which can lead to decreased sales or even bankruptcy if not dealt with properly. And most importantly, whistleblowers help stop fraud before it gets out of hand so that everyone wins.