In a proactive forensic services era: Emerging trends in forensic services
In a proactive forensic services era: Emerging trends in forensic services
By Boitumelo Lekoko, Director – Forensics at BDO South Africa
Forensic investigations are evolving rapidly in response to increasingly sophisticated fraud. From emerging fraud trends and schemes, as technologies evolve, to heightened public expectations for accountability, practitioners today must blend technical expertise, upskill with tech-enabled forensic procedures, with courageous-ethical leadership and strategic foresight.
There is no option but to shift fraud management from reactive investigations to proactive, prevention and detection interventions. According to the ACFE Report of Nations: Occupational Fraud 2024, the most common anti-fraud controls were a code of conduct, external audits of the financial statements and internal audits. Whistleblower tips remain the most effective detection method, accounting for nearly half of identified cases, but organisations are now investing heavily in fraud risk management frameworks, hotlines, and continuous monitoring. The truth is, whistleblowing remains the most vulnerable of mechanisms, because whistleblower retaliation has become rampant in recent times, not only resulting in loss of livelihood, it has taken away lives. The consequences of whistleblowing done in good faith, has created a culture of fear- of silencing the voices that are important to fighting the rampant fraud and corruption. Personally, I call it “a state of insecurity for truth-tellers.” The Department of Justice and Constitutional Development published its comprehensive review and recommendations for reforms. The review makes significant recommendations for reforms to the Protected Disclosures Act, and we look forward to the strengthening of the whistleblower protection regime.
South Africa’s King IV Report on Corporate Governance, underscores this preventative mindset by requiring boards to govern risk, including fraud risk, in a way that supports the organisation in setting and achieving its strategic objectives. The Call to Action is clear: Complacency towards fraud and corruption is costly. Beyond reputational harm and financial losses, organisations must contend with the cost of investigations, legal proceedings, and rebuilding trust. Rather invest in an effective Fraud Risk Management framework which address fraud before, during and after it occurs.
A significant development in South Africa’s anti-corruption legal framework is the insertion of Section 34A into the Prevention and Combating of Corrupt Activities Act, 2004 (PRECCA), through the Judicial Matters Amendment Act, 2023. This provision introduces a new corporate offence of “failure to prevent corruption”, bringing South Africa in line with evolving global standards.
Under Section 34A, a private sector entity or a state-owned company may be held criminally liable if any “associated person” (broadly defined as anyone performing services on its behalf) engages in corrupt conduct to secure a business or personal advantage, even if the organisation did not directly authorise or participate in the act. The only defence available is proof that the organisation had in place “adequate procedures” to prevent such misconduct.
This amendment is particularly noteworthy as it mirrors the UK Bribery Act’s corporate liability model and builds on the UK’s recently introduced “failure to prevent fraud” law. By embedding this principle into local legislation, South Africa is signalling a stronger proactive compliance obligation on organisations to design, implement, and monitor robust anti-corruption and anti-fraud controls.
In practice, this means boards and executives must go beyond written policies to demonstrate tangible, effective fraud and corruption prevention frameworks. Failure to do so not only risks reputational and financial harm but now also exposes organisations to direct criminal liability.
Data analytics, AI, and digital forensics have become indispensable. Investigators can now process millions of records in minutes, tracing anomalies across complex systems. Yet technology also fuels fraud. Deepfake scams, like one case where criminals impersonated a CFO on a video call to steal millions, illustrate the new threats we face. Forensic teams must therefore embrace both AI-driven tools and cybercrime techniques, including blockchain tracing of illicit cryptocurrency flows. This takes upskilling, re-learning and embracing the evolution of the profession.
In South Africa, corruption scandals, and lack or absence of consequence management and accountability have driven reforms such as the Material Irregularities (MI) which were brought about the amendments to the Public Audit Act. These amendments have given the Auditor-General (AG) the power to inter alia refer an MI identified during an audit to a relevant public body for investigation, and under certain circumstances, hold accounting officers/authorities personally liable for losses suffered by issuing a certificate of debt . These powers were given to the AG with the aim of enhancing consequence management in the public sector, and ensuring improved accountability and oversight by accounting officer and accounting authorities, respectively.. Maladministration and procurement fraud are still widespread, for instance, over 30% of the State Capture Commission report deals with public procurement irregularities, and perpetrators too often evade justice. Strengthening forensic skills within law enforcement and oversight bodies is crucial if investigations are to translate into real consequences.
Organisations increasingly engage forensic experts before problems occur. Forensic services now cover fraud and ethics risk assessments, benchmarking organisations on their fraud management maturity, ethics advisory, governance reviews, and forensics data analytics. This proactive role positions forensic professionals as strategic partners in building “fraud-resistant and resilient” organisations, a shift that will define the future of our field.
By combining prevention, strong governance, tech-enabled preventative and detection solutions, forensic practitioners can protect assets, prevent losses, uphold ethics, and foster public trust in both the private and public sectors.