South Africa's rising financial crime rates reveal a troubling trend: insider fraud is becoming a significant threat to businesses. This article explores recent cases, the psychological drivers behind fraud, and essential prevention strategies.
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South Africa’s high criminality ranking in the recently released 2025 Global Organised Crime Index has drawn widespread attention, but the data reveals a deeper concern: financial and cybercrime are surging worldwide as the digitisation of financial systems creates new opportunities for criminals, according to Christo Snyman, managing member of CS Forensics.
He says for many businesses, however, the greatest risk does not come from external syndicates but from within their own organisations.
According to Snyman, investigations increasingly highlight insider fraud, where employees exploit their access to systems and sensitive information to embezzle funds or manipulate transactions.
"A recent South African case involving a top-rated residential and commercial rental and sales agency operating across the country illustrates how insider fraud can unfold within established systems," he says.
A preliminary investigation by CS Forensics uncovered irregular financial activity linked to a senior employee. According to Snyman, the investigation found irregular allocations on the rental payment system and payments made to false beneficiaries by Riaan Theunissen, formerly the regional rental manager at the agency.
“Theunissen bypassed internal controls in the rental payments system by archiving certain transactions and failing to follow the agency’s internal approval and payment procedures. His system access allowed him to both load and release payments, creating an opportunity to manipulate the payment process,” says Snyman.
CS Forensics identified multiple methods allegedly used to embezzle funds and conceal fraudulent activity, amounting to 473 payments totalling R5,5 million, he says.
On Friday last week, Theunissen was found guilty on all charges, with evidence presented of theft and fraud. While each case differs, the pattern is familiar: insider access combined with weak controls creates fertile ground for fraud, Snyman says.
Snyman stresses that prevention is the best protection, and understanding the psychological drivers behind fraud is critical. “No person or business is exempt from the threat posed by financial crime. A ‘career criminal’ is more than just a term – it’s a reality that speaks to the persistence and sophistication of individuals and syndicates who devote their time to systematically exploiting financial systems and human vulnerabilities.”
He says many investigations rely on the ‘fraud diamond’ model, which identifies four enabling factors: pressure, capability, opportunity, and rationalisation. Economic pressure is often the most common driver, with rising debt, hardship, and lifestyle inflation creating strain.
“Addiction can also play a role. In a different case that CS Forensics handled, the perpetrator committed extensive fraud while laundering funds into online gambling platforms and sustaining a costly drug addiction. These pressures can create the motivation for fraud, but it is capability and opportunity that allow it to happen," says Snyman.
Employees in positions of trust, with access to financial systems or the ability to bypass controls, are uniquely placed to exploit weaknesses. The consequences for businesses are severe, he says.
PwC’s Global Economic Crime and Fraud Survey found that more than half of organisations globally experienced fraud in the past two years, with combined losses exceeding $42 billion. “The impact of fraud on businesses extends far beyond the immediate financial loss. Companies can face long-term profit erosion, reputational damage, legal exposure, and significant operational disruption,” says Snyman.
According to Snyman, for businesses, prevention must start inside the organisation. Strong systems, effective governance, and employee awareness are essential. Measures include strict access management, mandatory password changes, separation of duties in payment processes, and regular auditing of high-risk transactions. Equally important is building a culture of vigilance.
“The most prominent entry point into an organisation is often the employees themselves. A hyper-vigilant, responsible, and well-trained team member is not only a valuable human asset but also a powerful identifier of risk and deterrent to crime," says Snyman.
As financial crime evolves alongside technology, South African businesses face an increasingly complex risk environment. The lesson from recent investigations is clear: while organisations often focus on external threats, the most significant vulnerabilities may lie within their own systems, he says.
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