Fraud Awareness Week: Procurement Fraud And Supplier Collusion Emerge As The Most Overlooked Business Risks

Pretoria, South Africa – As organisations mark International Fraud Awareness Week (15-21 November), forensic investigations firm RiXForensica is warning that procurement fraud, supplier collusion and undisclosed conflicts of interest remain among the most significant yet under-recognised threats facing businesses.

•Gordon Maeta, Director at RiXForensica.

According to the Association of Certified Fraud Examiners' (ACFE) Occupational Fraud 2026: A Report to the Nations, organisations globally lose an estimated 5% of annual revenue to fraud each year, while the typical fraud scheme remains undetected for 12 months. The report found that corruption featured in 56% of reported occupational fraud cases across Sub-Saharan Africa, making it the region's most prevalent fraud scheme.

For organisations operating in sectors such as energy, manufacturing, logistics and transportation, the risks often emerge long before a fraud investigation begins.

"Many organisations continue to focus on fraud detection after losses have occurred," said Riaan van Jaarsveld, Director at RiXForensica. "The greater risk often lies in who businesses choose to work with. Procurement fraud, supplier collusion, shell companies, undisclosed relationships and conflicts of interest frequently enter organisations through contractor appointments, supplier onboarding and procurement processes where due diligence is inadequate, inconsistent or overlooked altogether."

The hidden cost of supplier fraud

While cybercrime and external attacks often dominate headlines, occupational fraud continues to cause extensive financial and operational damage from within organisations and across their supplier networks.

The ACFE report found that billing schemes, non-cash asset theft, cheque and payment tampering, and expense reimbursement fraud remain among the most common fraud risks globally. In Sub-Saharan Africa, collusion between multiple perpetrators was identified in 58% of reported occupational fraud cases, exceeding the global average.

According to RiXForensica, industries with large procurement budgets, extensive supplier ecosystems and distributed operations face heightened exposure.

These include:

•Energy and utilities organisations managing major infrastructure and maintenance contracts.

•Manufacturing businesses procuring raw materials, equipment and outsourced services.

•Logistics and transportation companies reliant on fuel suppliers, fleet operators, subcontractors and warehousing partners.

"Fraud today is rarely committed by a lone individual acting in isolation," said Gordon Maeta, Director at RiXForensica. "Increasingly, investigations reveal networks involving employees, suppliers, contractors or external parties working together to exploit weaknesses in controls. That is why organisations must extend their fraud prevention efforts beyond employees and pay equal attention to third-party risk."

Prevention remains more effective than recovery

One of the most concerning findings from the ACFE research is that once fraud occurs, recovery is far from guaranteed.

Across Sub-Saharan Africa, only 12% of organisations recovered all losses resulting from occupational fraud, while 49% recovered nothing at all.

•Riaan van Jaarsveld, Director at RiXForensica

The report also found that more than half of fraud cases globally resulted from either inadequate internal controls or the override of existing controls.

RiXForensica believes organisations should place greater emphasis on proactive fraud prevention measures, including:

Enhanced supplier due diligence and onboarding.

•Beneficial ownership verification.

•Conflict-of-interest screening.

•Adverse media and sanctions checks.

•Ongoing employee and supplier monitoring.

•Procurement integrity reviews.

•Fraud risk assessments in high-exposure business units.

The company's due diligence and forensic investigation capabilities include procurement fraud investigations, employee fraud investigations, background screening, tracing, cyber investigations and claims validation services.

Fraud prevention is a business imperative

International Fraud Awareness Week serves as an opportunity for organisations to assess whether existing anti-fraud controls are capable of identifying the increasingly complex risks associated with modern business operations.

"Fraud is no longer simply a compliance issue," added van Jaarsveld. "It is a strategic business risk that affects profitability, operational continuity, investor confidence and reputation. Organisations that invest in prevention, intelligence-led due diligence and ongoing monitoring are not only reducing fraud losses but strengthening resilience and creating a more sustainable foundation for growth."