FEATURE : LOGISTICS
Preventing fraud inside Africa ’ s logistics enterprises
The complex and fast-paced nature of logistics contributes to internal financial risk , as the intricate supply chains and high transaction volumes make it easy for fraudulent activities to go unnoticed , while increasing reliance on technology creates additional vulnerabilities , says Ryan Mer , CEO eftsure Africa .
The South African logistics industry is the backbone of the nation ’ s economy , playing a vital role in driving trade and ensuring smooth supply chains . However , this sector , like many others , faces a hidden threat : internal fraud . While external incidents like cargo theft usually seize headlines , the damage inflicted by employees who exploit their positions of trust can be equally , if not more , detrimental .
Employees in finance departments with access to sensitive information may exploit this by submitting false expense claims , creating fictitious invoices , or manipulating financial records for personal gain .
The complex and fast-paced nature of logistics operations further contributes to the risk , as the intricate supply chains and high transaction volumes make it easy for fraudulent activities to go unnoticed .
Understanding the risk landscape of internal fraud and implementing robust counter measures is vital to securing the future of this critical industry .
Why fraud happens
The susceptibility of the logistics industry extends beyond mere opportunity . The increasing reliance on technology for managing inventory , processing transactions , and tracking shipments creates vulnerabilities that fraudsters can exploit .
The logistics industry faces a high risk of internal fraud , particularly payment fraud , due to factors such as the handling of large sums of money in various transactions .
Weak cybersecurity measures , lack of awareness or internal controls can allow internal actors to manipulate systems , manipulate data , or even
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