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 | Vigilance saves Standard Bank almost R1 billion |  |  |
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18 September 2006
Vigilant Standard Bank staff have frustrated almost R1 billion in fraud against the bank since 1999.
In 2004, Standard Bank launched its Fraud Miles programme, which rewards staff who go the extra mile to combat fraud. Each year a Standard Bank staff member is rewarded with R1 million for their vigilance.
Standard Bank's newest millionaire is Jena Hare from Home Loans Credit in Cape Town. Jena is one of 27 finalists who competed for this year's million rand grand prize. Jena was responsible for identifying a syndicate that attempted to defraud the bank of more than R23 million.
Says Jena: "This morning when I woke up I knew something special was going to happen. I was very focused. It just shows that vigilance does pay. I managed to stop several attempts by a home loans syndicate that was trying to defraud the bank. And, with my winnings, I am going to look for a house in Gordon's Bay.":
In 2005 –2006 Standard Bank staff reported 586 incidents valued at R168 million through the Fraud Miles campaign.
Roy Ross, Director: Distribution and Wealth at Standard Bank says Standard Bank staff are on the front line in the war against fraud.
"Fraud, be it blue or white collar fraud, costs the country almost R40 billion annually. To put this in perspective, R40 billion represents half the amount that local consumers spent on durable good last year. It also represents half the annual budget of the Protection Services, which includes Police, Justice, Prison and Defence. It has to be said, that in the absence of any quantifiable information, R40 billion in annual fraud losses is the best educated guess," says Ross
Standard Bank introduced Fraud Miles in 1999 to incentivise staff to report and frustrate fraud at Standard Bank. As part of the Fraud Miles programme, staff can earn miles for every incident of fraud that they report. The number of miles earned depends on the value and type of fraud that is reported on. Staff earn one mile for every R100 of fraud prevented. One mile is equal to R1, with staff qualifying for the million rand draw once they have accumulated 1 000 Fraud Miles.
To add further incentive, R50 000 is awarded to a staff member every quarter. Staff who qualify for the year end Fraud Miles draw stand a chance to win R1 million.
"In today's modern world, fraud knows no boundaries. Our staff are our first line of defence and our most important asset in dealing with fraud. It is imperative that our staff know and understand what constitutes fraud and how to deal with it. Fraud Miles has been an invaluable tool for us in assisting to detect, expose and prosecute unethical business practices. The new global environment requires us to have a zero tolerance to fraud and fraudulent activity," says Ross.
The most often incidents of fraud are:
- Cheque fraud
- Credit card fraud
- Identity theft.
Standard Bank will be extending the Fraud Miles competition to its 17 African operations this year.
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