THE IMPACT OF FRAUD ON AUSTRALIAN BUSINESS

Fraud is one of the most significant yet underestimated risks facing Australian businesses today.  While not all employees engage in misconduct, studies show that 55% of all fraud committed against Australian businesses comes from within the organisation itself.

Fraud is often difficult to detect and its impact can be devastating - not only financially, but also to reputation, employee morale, and client trust.

The Alarming Statistics

Numerous case studies highlight just how costly fraud can be:

• The average fraud case amounts to $3 million.

• 60% of fraud cases take more than three years to detect.

• 61% of fraud cases result in no recovery at all.

• Fewer than 5% of businesses have insurance to protect against fraud.

• Overall, fraud costs Australian businesses an estimated $8.5 billion annually.

These figures demonstrate that fraud is not just an operational risk - it is a strategic threat.

Reducing the Risk of Fraud

While no business is immune, there are practical steps that can reduce exposure:

• Conduct rigorous background checks on all prospective employees.

• Implement and regularly review internal policies and procedures to ensure they remain relevant and effective.

• Encourage anonymous reporting mechanisms, such as whistleblower hotlines, to detect misconduct earlier.

• Stay informed about developing fraud trends, both locally and globally.

Why Action Matters

Fraud allegations should always be reported to police as soon as they are identified.  However, businesses cannot assume that law enforcement will take immediate action to safeguard their interests.  With limited resources, police are unable to investigate every report comprehensively.

This is where professional investigators add value - providing businesses with the clarity, evidence, and support needed to make informed decisions and protect their interests.

How QNA Can Help?

If you believe your business has been the victim of theft or fraud, QNA Investigations can help.  Our specialist investigators deliver discreet, professional solutions to uncover the facts, gather admissible evidence, and support businesses in resolving fraud matters effectively.  If you’d like to know more, contact us by phone on +61 2 9212 5000 or via email at mail@qnainvestigations.com.au.