Commercial crime under the spotlight

September 2002 Security Services & Risk Management

The consolidation of SAPS commercial crime squads into effective regional units will have a considerable impact on white-collar crime countrywide. Deputy national commissioner Louis Eloff said these units would specialise in more complex and potentially damaging crimes.

"This is not to say that smaller cases of fraud will not be adequately attended to. There is enough expertise to deal with issues such as forged and fraudulent cheques and other cases of fraud within SAPS to ensure that all cases are handled effectively. If necessary, difficult cases can be escalated to the specialised units." He said the new specialised units would be staffed according to the amount of white-collar crime in specific regions.

Tom Bouwer, who heads up the Business Against Crime commercial crime project, said consolidation of commercial crime squads into more effective regional units would go a long way to regaining control of white-collar crime. "There is no question that it is a very serious problem. At present, more than R40 bn a year is being siphoned off the economy by white-collar criminals - more than is being earned by the entire tourism industry. In addition, we have lost considerable amounts due to foreign investment not happening at the scale that we need to create jobs."

Howard Griffiths, managing director of private investigations company Griffiths and Associates, said white-collar crime had become a serious threat to the economy. "Based on our experience, I believe we need more and better trained commercial crime specialists in the South African Police Service, which the present restructuring seems to address." Responding to the latest KMPG fraud survey, which for the first time included the public sector, he said the massive 13% leap in employee fraud reported since the last survey in 1999, probably erred on the conservative side. "Every single one of our clients are reporting figures much higher than this and it was for that reason that we established a separate division of the company to address the problem." Griffiths said their experience had shown that as much as 70% of employees in some businesses acted dishonestly often leading to the demise of their companies.

While technology has been touted as the ultimate solution for putting a stop to commercial crime through new and improved computer systems, it has in fact become a two-edged sword, Griffiths said. "Despite all the safeguards in use today, computers have made it a lot easier for highly skilled computer experts to commit fraud on a gargantuan scale compared to their forebears who had to cook the books with pen and ink. "Through techniques such as rounding off small amounts to the nearest cent or five cents and diverting the proceeds to a bogus bank account, billions have been skimmed off the accounts on unsuspecting bank account holders."

He conceded that banks and other financial institutions had tightened up on accounting procedures but he said evidence uncovered by his investigators showed that fraud in general was still being committed on a massive scale. "The thieves are getting smarter and unless we can oppose them on an equal and level playing field, business is going to lose out," he concludes.

For more information: Howard Griffiths, Griffiths and Associates, 011 786 8556, or Tom Bouwer, Business Against Crime, 011 883 0717.





Share this article:
Share via emailShare via LinkedInPrint this page



Further reading:

Risk management and compliance enforcement
Security Services & Risk Management
Having a risk management and compliance programme (RMCP) is not just a procedural formality; it is a legal requirement under Section 42 of the Financial Intelligence Centre Act (FICA).

Read more...
The dangers of poor-quality solar cables
Security Services & Risk Management Smart Home Automation
Reports indicate that one in six fires attended by South African firefighters is linked to substandard solar installations, often due to faulty wiring or incompatible components.

Read more...
Growing risks for employers
Security Services & Risk Management
With South Africa’s unemployment rate exceeding 32% and expected to rise beyond 33% this year, desperation is fuelling deception in the job market. Trust is no longer a given, it is a gamble.

Read more...
Chubbsafes celebrates 190 years
Gunnebo Safe Storage Africa News & Events Security Services & Risk Management
Chubbsafes marks its 190th anniversary in 2025 and as a highlight of the anniversary celebrations it is launching the Chubbsafes 1835, a limited edition 190th-anniversary collector’s safe.

Read more...
New law enforcement request portal
News & Events Security Services & Risk Management
inDrive launches law enforcement request portal in South Africa to support safety investigations. New portal allows authorised South African law enforcement officials to securely request user data related to safety incidents.

Read more...
Continuous AML risk monitoring
Access Control & Identity Management Security Services & Risk Management Financial (Industry)
AU10TIX, launched continuous risk monitoring as part of its advanced anti-money laundering (AML) solution, empowering businesses to detect behavioural anomalies and emerging threats as they arise.

Read more...
Growing risks for employers
Security Services & Risk Management
With South Africa’s unemployment rate exceeding 32% and expected to rise beyond 33% this year, desperation is fuelling deception in the job market. Trust is no longer a given, it’s a gamble.

Read more...
Managing mining physical security risks
Zulu Consulting Security Services & Risk Management Mining (Industry) Facilities & Building Management
[Sponsored] Risk-IO, a web app from Zulu Consulting, is designed to assist risk managers in automating and streamlining enterprise risk management processes, ensuring no steps are skipped and everything is securely documented.

Read more...
SAFPS issues SAPS impersonation scam warning
News & Events Security Services & Risk Management
The Southern African Fraud Prevention Service (SAFPS) is warning the public against a scam in which scammers pose as members of the South African Police Service (SAPS) and trick and intimidate individuals into handing over personal and financial information.

Read more...
Rewriting the rules of reputation
Technews Publishing Editor's Choice Security Services & Risk Management
Public Relations is more crucial than ever in the generative AI and LLMs age. AI-driven search engines no longer just scan social media or reviews, they prioritise authoritative, editorial content.

Read more...