Mistresses blow the whistle
2003-11-28 21:38
Johannesburg - Disillusioned mistresses of fraudsters reveal more about their lover's crimes than auditors or managers, said a forensic expert.
Speaking at a congress on white-collar crime in Midrand on Thursday, Steven Powell, chief of Deloitte & Touche's forensic services in the Western Cape, said: "Hell hath no fury like a woman scorned."
More than 50% of frauds were discovered "accidentally". Powell said 20% of fraud cases were revealed by disillusioned mistresses and auditors accounted for 18%.
Business managers accounted for only about 10% of frauds uncovered.
Regarding the crooks themselves, Powell said 80% of white-collar crime was committed by employees who had been with a company for longer than five years.
"It happens when trust replaces control."
Usually confess when confronted
The culprits were usually over 30 and had a stable family life, average training and were in good health. They also didn't usually have a criminal record. About 70% were men.
When confronted, they usually came clean, he said. In 47% of all cases that Deloitte & Touche investigated, the suspects admitted guilt.
When asked why they had committed fraud, Powell said it was a combination of pressure, opportunity and rationalisation.
People living above their means, or those who gambled, used drugs or were involved in extra-marital relationships were often driven to commit fraud.
He said a 65-year-old bookkeeper from Cape Town embezzled R229 000 in less than a year from a non-profit organisation. She gambled away R189 000 of it.
Poor internal management accounted for about 60% of fraud. He warned companies not to ignore warning signs and recommended they plug loopholes in their systems.