3 Types of Insider Fraud with Claire Maillet

03-04-2024 • 46 mins

In this episode, we’re shining a light on a pervasive threat that often lurks in the shadows of corporate environments: insider fraud. We’ll explore the insidious nature of insider threats, the various forms they can take, and most importantly, how organizations can arm themselves with knowledge and strategies to mitigate these risks effectively.

Today’s guest is Claire Mailet. Claire is an award-winning financial crime prevention expert and has worked in the field for over ten years. In her spare time, Claire assists universities in the UK to support staff and students who stammer and she’s currently undertaking a part time Ph.D at the University of Portsmouth, looking at internal fraud in FinTechs.

Show Notes:

[1:05] - Claire shares her background and what she does now in her career.
[5:18] - The growth of counter-fraud in academia has increased in the last few years.
[6:31] - Insider fraud is a type of fraud that isn’t really well known right now. It is under researched and underestimated.
[7:59] - When people think about fraud, they think about the customer. They will very rarely think about people on the inside.
[9:09] - What is insider fraud?
[10:13] - An underestimated form of insider fraud is when employees who leave a company aren’t removed from internal systems and still have access.
[12:50] - Organizations need to have vetting measures in place at the time of onboarding to ensure fraud is not committed on a CV.
[15:18] - The more in depth you can go, the more safe and secure you are.
[16:41] - Deterrents get lost when prevention is focused on.
[18:35] - Cost is a real issue for many companies.
[21:35] - Companies need to get on board with the idea of having things in place for protection.
[23:40] - Current employees working from home can be a risk to data.
[27:07] - It doesn’t matter how ethical and good someone is.
[30:22] - In a lot of startups and small businesses, business owners will hire best friends or family members over someone who can best do the job.
[33:50] - What could someone’s motivation be to commit insider fraud?
[36:30] - There are a lot of different ways to commit insider fraud, such as falsified time sheets and information on a resume.
[38:42] - For every possible way a person can commit fraud, there needs to be something in place. Owners need to think through these possibilities.
[40:27] - The whole business needs to be involved in the education and prevention of fraud.
[42:20] - It is common for employees to think that if “fraud” is not in their job title, they don’t have to worry about it.