Fraud remains one of the greatest threats to the existence of anybusiness and the insurance sector is most susceptible to this threat. In the 2007 PWC Biennial Global Economic Crime Survey, it was reported that the insurance sector reported the greatest direct losses from fraud. In South Africa, it is estimated that insurers lose billions of Rands each year through fraud.Santam’s Forensic Services have adopted a multidimensional model to fight fraud and other related offences. This model comprises of fraud deterrence, fraud prevention, fraud awareness, searching for fraud and fraud investigation. An important concept relating to fraud deterrence is the implementation of control measures and the primary responsibility for establishing and maintaining these controls rests with management. Santam subscribes to a zero tolerance approach which acts as a strong deterrent.In all cases where the conduct amounts to a criminal offence, Forensic Services will report such conduct to the relevant law enforcement agency. The fraud policy, code of ethics and the disciplinary code are all policies that also acts as strong deterrents.Fraud prevention is a component of risk management and includes creating an environment which inhibits fraud. This is achieved by proper background and vetting processes. Searching for fraud - there is no single method that can be implemented which will detect fraud the moment it is committed. How-ever, it is possible to implement measures that will increase the chances of detecting fraud before it reaches significant levels. Effective use is made of technology in detecting fraud trends and patterns offences. This event is held twice a year. Fraud investigation is a structured process which is focused on the gathering of sufficient reliable information to enable an investigator to either prove or disprove allegations received.The results of such an investigation will dictate further actions. Where the conduct which is the subject of investigation, amounts to a criminal offence, San-tam’s Forensic Services will lodge a complaint with the relevant law enforcement agency, and shall render to such agency such assistance as may be required to investigate, charge and prosecute the offending party.Despite constant reassurance to staff about protecting their identity when they report fraud or other irregularities, they still seem to be reluctant to do so. This reluctance can be attributed to their fear of retribution for making such reports. In order to address this dilemma and encourage reporting, it is essential to adopt a policy that can offer protection to these reporters and such protection is offered by the Protected Disclosures Act or commonly known as the Whistle Blower’s policy. This policy has been implemented and it is hoped that this policy will encourage staff to report all their suspicions of fraud or other regularities without any fear of retribution. I guess if fraud is a disease, you would need a doctor to treat it. This rebranding has really helped and we receive a lot more direct reports from staff.

(COURTSY: SAICB-May, 2009)