Intra-organisational loss rarely detected

May 2003 News & Events

Only 20% of intra-organisational loss is on average ever detected, and of that figure, only some 20% ever gets reported to the police, says Jenny Reid, new managing director of GriffithsReid, South Africa's oldest corporate security management company.

"This is a staggering figure when one considers that white collar crime in South Africa alone costs over R40 billion a year," says Reid, who was speaking at a business breakfast in Johannesburg to launch the revamped GrifithsReid corporate profile and her appointment as MD.

"When one considers that the security industry in this country spends some R14 billion a year, with 55% of that going on the guarding industry alone, then companies have the right to demand a high standard of service from the industry," she says.

According to a recent report on intra-organisational crime, most losses in companies occur from asset misappropriation (61%), with computer related crime (51%) and corruption (50%) all ranking ahead of organised crime (35%) or financial statement fraud (21%).

"In addition, there are a number of new risks of which companies have to be aware," continues Reid. Some 99% of companies do not have policies regulating employee communications, "yet this can be one of the biggest abuse sectors with the rise of the Internet.

"According to a recent Ernst & Young report, some 85% of the worst frauds were committed by employees themselves, with 55% coming from management ranks with less than one year's service."

Incredibly, Reid adds, some 38% of all companies surveyed had 'never' run a fraud prevention programme, and 11% last had one a year ago. "It is a myth that the more one pays for security, the better the service.

"The reality is that putting a guard at the gate is only one part of a holistic security solution. There are many other factors, such as addressing employee behaviour, ensuring that technological security measures are backed up by competent staff, and that guarding companies are subjected to impartial management which ensures they deliver all the promised services to standard.

"A proactive security solution is therefore an investment in a company's bottom line," Reid says. "Through proactive measures, security need not be an expense, but in fact an asset which saves the company money."

For more information, contact Jenny Reid, GriffithsReid, 011 786 8556.





Share this article:
Share via emailShare via LinkedInPrint this page



Further reading:

Highest increase in global cyberattacks in two years
Information Security News & Events
Check Point Global Research released new data on Q2 2024 cyber-attack trends, noting a 30% global increase in Q2 2024, with Africa experiencing the highest average weekly per organisation.

Read more...
The power of PKI and private sector innovation
Access Control & Identity Management News & Events Government and Parastatal (Industry)
At the recent ID4Africa 2025 Summit in Addis Ababa, the spotlight was firmly on building secure, inclusive, and scalable digital identity ecosystems for the African continent.

Read more...
Bosch Security renamed Keenfinity
News & Events
Globally renowned brands for video systems, access control and intrusion alarm systems, as well as communication systems, unite under the roof of the new company Keenfinity Group.

Read more...
2025 video surveillance market set for improved fortunes
News & Events Surveillance
Novaira Insights has unveiled its latest report, World Market for Video Surveillance Hardware and Software – 2025 Edition, forecasting a healthy growth rate of 8,1% until 2029, excluding China.

Read more...
Wialon announces integration with fleet maintenance and optimisation platform
News & Events Transport (Industry) Logistics (Industry)
Fleet management software platform integrates with a fleet maintenance and optimisation platform to support mutual customers for better workflows and deeper insights into fleet operations.

Read more...
DeepSneak deception
Information Security News & Events
Kaspersky Global Research & Analysis researchers have discovered a new malicious campaign which is distributing a Trojan through a fake DeepSeek-R1 Large Language Model (LLM) app for PCs.

Read more...
Almost 50% of companies choose to pay the ransom
News & Events Information Security
This year’s Sophos State of Ransomware 2025 report found that nearly 50% of companies paid the ransom to get their data back, the second-highest rate of ransom payment for ransom demands in six years.

Read more...
Value and industry insight
Securex South Africa Training & Education News & Events
Securex South Africa 2025, co-located with A-OSH EXPO, Facilities Management Expo, and Firexpo, drew thousands of security professionals from across the continent and beyond, offering a platform for networking, product discovery, and knowledge sharing.

Read more...
Gallagher Security achieves ISO 27001 recertification
News & Events Training & Education
Gallagher Security has successfully achieved certification to the updated ISO/IEC 27001:2022 standard for Information Security Management Systems (ISMS). This accomplishment builds on previous certifications and reflects a continued commitment to the highest standards of information security.

Read more...
Survey highlights cost of cyberdamage to industrial companies
Kaspersky Information Security News & Events
The majority of industrial organisations estimate their financial losses caused by cyberattacks to be over $1 million, while almost one in four report losses exceeding $5 million, and for some, it surpasses $10 million.

Read more...










While every effort has been made to ensure the accuracy of the information contained herein, the publisher and its agents cannot be held responsible for any errors contained, or any loss incurred as a result. Articles published do not necessarily reflect the views of the publishers. The editor reserves the right to alter or cut copy. Articles submitted are deemed to have been cleared for publication. Advertisements and company contact details are published as provided by the advertiser. Technews Publishing (Pty) Ltd cannot be held responsible for the accuracy or veracity of supplied material.




© Technews Publishing (Pty) Ltd. | All Rights Reserved.