Vodacom Group fired 631 employees and contractors in the 2024 financial year for fraud-related incidents, leading to 15 arrests.
According to the telecommunications operator’s group’s annual report and consolidated financial statements released on Friday, almost 9 000 cases of malfeasance were brought to its attention through its various channels.
“From 1 April 2023 to 31 March 2024, the group’s corporate security divisions investigated over 8 652 cases of alleged fraud or irregularities, of which 6 872 related to external cases and 1 780 to internal cases,” said Vodacom. “The end result ensured the arrest of 15 suspects and the dismissal of 631 staff/contractors.”
According to Vodacom’s ESG (environment, social and governance) report, the group received reports from various channels, including online sources, direct reports from customers, external whistle-blowers and a dedicated whistle-blowing hotline called Speak Up.
“All who work for or on behalf of Vodacom have a responsibility to report any behaviour at work that may be unlawful or criminal, or that could amount to abuse of our policies, systems or processes and, therefore, a breach of our code of conduct,” said Vodacom.
One of Vodacom’s groupwide initiatives involves the use of big data analytics to improve its view of its customers and promote personalised offerings based on individual needs. An added advantage of this platform is that it also contributes to Vodacom’s ability to detect fraud.
“The application of big data analytics facilitates automated decision making across our business units, improving our network’s fraud detection and control mechanisms,” it said.
Big data tools
Vodacom identified the use of big data tools to mitigate fraud as one of its short-term strategic priorities. Also important is the management of risk associated with third parties such as suppliers.
“Third-party risk management remains a key focus area, with additional controls incorporated into the programme and enhancements to the due diligence processes for third parties and our mergers and acquisitions activities,” said Vodacom.
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“Vodacom Group has zero tolerance for fraudulent activity … and remains committed to taking appropriate action to ensure the protection of its customers,” Vodacom spokesman Byron Kennedy said.
“We use advanced technology to detect internal and external fraudulent attempts and investigate each of these so that we ultimately satisfy what customers and regulators expect of us.” – © 2024 NewsCentral Media
