Amon Alakwisa Phiri

WHAT SHOULD YOU DO WHEN SENIOR LEADERSHIP IS INVOLVED IN SUSPECTED FRAUD?

Imagine discovering credible evidence suggesting that your Chief Executive Officer or Chief Financial Officer or Board Director, worse Board Chairperson or another senior leader has acted unethically or may be involved in prima facie fraud.

Do you keep quiet, agree with the conduct, report it internally or become a whistleblower?

Your response may determine whether you protect your integrity or become connected to the misconduct. Let us consider this do you keep quiet:

Silence may appear to be the safest option, especially when the person involved controls your employment, appointment, promotion or professional future. However, knowingly remaining silent can create serious ethical and professional consequences.

If you have a duty to report suspected misconduct but deliberately conceal it, approve related documents or help prevent its discovery, your silence may be interpreted as complicity. You could later be required to explain what you knew, when you became aware of it and why you failed to act.

Silence does not always protect you. Sometimes it only postpones accountability. In my 16 years Professional experience there is nothing hidden where numbers are concerned unless you do not know how to count.

Time will catch-up with you, someone smarter than you will expose that dubious deal.

Do not protect a position by sacrificing your integrity. Speak through the correct channels, rely on evidence and stand for what is right.

(c) September 2026

Welcome to AAP Series where ML related nuggets are shared, Episode 13:

In this Episode https://youtu.be/Vnfs01uuR20 I am sharing that Identity thieves can use different methods to obtain personal, financial and confidential information.

Identity theft can happen when you least expect it. Protect your personal information, destroy sensitive documents before disposal, use strong passwords, inspect payment machines and verify every request for confidential information.

(c) August 2026

AAP Series - Methods used to commit Identity Theft Welcome to AAP Series where ML related nuggets are shared.Episode...

Look out for AAP Series Episode 13

Identity theft can be perpetrated through seemingly simple but dangerous methods, including Pretexting, Skimming, Hacking, Dumpster Diving and Phishing.

Understanding these methods is your first line of defense.

Learn to recognise suspicious approaches, protect your personal and financial information, and think carefully before sharing sensitive details.

(c) August 2026

INTEGRITY IS EVERYTHING

Being raised right isn't about never drinking, never partying, never smoking, or never making mistakes. We are human, and mistakes are part of life's journey and this test our character.

Your true character is not measured by how you behave when people are watching. It is revealed by the choices you make when there is no applause, no supervision and no fear of being caught.

Integrity is choosing what is right even when doing wrong would be easier and nobody would know.

While your Reputation might be something else, Integrity is who you truly are.

Who are you?

(c) August 2026

WHY OPPORTUNITY ALONE DOES NOT EXPLAIN FRAUD

Fraud rarely happens simply because someone needs money or discovers a weakness in an organisation. Understanding why one person exploits an opportunity while another person facing similar circumstances does not require Financial Crimes Agents (FCAs) to look beyond the traditional Fraud Triangle.

The Fraud Diamond theory enhances the traditional fraud framework associated with Donald Cressey by considering four critical elements

1. What Drives the Person? (Pressure)
Pressure is the motivation or incentive pushing an individual towards fraudulent behaviour. It may arise from financial difficulties, personal circumstances, lifestyle expectations, debt, addiction, or pressure to achieve organisational targets, or worse to make it quick in life.

However, pressure alone does not make someone a fraudster.

Many people experience serious financial pressures without committing fraud. Then why do others commit fraud?

2. Can I get away with it? (Opportunity)
Opportunity arises where there internal control weaknesses in an organisation, such make fraud possible.

Weak internal controls, inadequate segregation of duties, poor supervision, excessive system access and management override can create an environment in which someone believes:

"Nobody scrutinises my transactions. I can probably get away with it."

Trust is important in every organisation, but trust without verification is not an internal control.

The longer an individual operates without independent review, the greater the opportunity may become for inappropriate activities to remain undetected.

3. The Killer punch (Rationalization)
Perhaps one of the most dangerous stages occurs when an individual begins justifying wrongdoing. When these fraudersters thinking begin to sound like:

a. "I work harder than everyone else."
b. "The CEO earns much more than me, yet I do most of the work."
c. "I am only borrowing the money; I will replace it."
d. "After everything I have done for this organisation, I deserve this."
e. “Why do I earn so little, maybe I am escorting others here.”

These statements repeated long enough, can make unacceptable conduct appear reasonable to the perpetrator.

Fraud becomes particularly dangerous when wrongdoing is no longer viewed as wrongdoing by the person committing it.

4. The missing piece (Capability)
This is the deadliest segment of the Fraud Diamond; capability is the distinguishing addition of the Fraud Diamond.

An opportunity may exist, but does the individual possess the knowledge, position, authority, confidence and psychological ability to exploit it?

A capable perpetrator may understand the organisation's systems sufficiently to identify weaknesses, override controls, manipulate documentation, maintain deception over long periods and operate under the pressure associated with concealing misconduct.

Relationships can also become part of capability. A long serving employee may believe:

a. "They trust me. Even if they discover it, they will forgive me."

This is why profiling high-risk positions and understanding capability is an important fraud-risk control.

For controlling officers, Internal Auditors, Audit Committees and Boards, the capability dimension deserves particular attention.

Individuals with extensive authority, institutional knowledge or privileged system access may have greater capacity to circumvent controls.

The Fraud Diamond therefore helps explain why two individuals exposed to similar pressures and opportunities may behave completely differently. One may walk away, while another may possess the capability and rationalization necessary to design and conceal a fraudulent scheme.

Usually, forgery is the most utilised approach in organisations.

Follow the AAP Financial Crimes Mentorship Program for more insights on our Youtube channel https://www.youtube.com/

(c) August 2026

Coming Soon - AAP Series Financial Crimes Mentorship

Effective fraud-risk management requires strong segregation of duties, independent reviews, system access controls, whistleblowing mechanisms, periodic fraud-risk assessments, staff rotation where appropriate, and greater scrutiny of positions capable of overriding established controls.

AAP Series, under The KLA Group, will be launching a website; the platform will also support a Financial Crimes Mentorship Programme, covering areas including;

i. Forensic accounting,
ii. Enterprise Risk Management,
iii. Corporate governance, and
iv. Fraud-risk assessments.

The objective is to equip participants with practical skills to assess not only the environmental conditions that create fraud opportunities, but also the behavioural and capability factors associated with individuals occupying high risk positions in organisations.

- Remember Pressure may provide the motivation.
- Opportunity opens the door.
- Rationalization provides the justification.
- But capability determines whether the individual can walk through that door, harden their heart commit the fraud and continue operating with the guilty without detection.

That is what makes the Fraud Diamond such a useful framework for modern fraud-risk assessment.

c) August 2026

Welcome to AAP Series where ML related nuggets are shared.

Episode 12: Reasons why someone might commit Identity theft?

In this Episode (https://youtu.be/H4sBwzYjYzs) I am sharing that identity theft is often driven by personal motives rather than opportunity alone.

Protect your identity. Protect your future. Stay vigilant, safeguard your personal information, and report suspicious activity immediately.

(c) August 2026

AAP Series - Reasons why someone might commit Identity theft? Welcome to AAP Series where ML related nuggets are shared.Episode...

Look out for AAP Series Episode 12

The same way theft is perpetrated, there reasons why people commit Identity Theft!

Identity theft is often driven by personal motives rather than opportunity alone.

In the next episode to be uploaded we discuss reasons such as:

a. Revenge; using another person's identity to damage their reputation, finances, or personal life.

b. Personal gain; stealing identities to obtain money, loans, credit, goods, or other financial benefits fraudulently.

c. Access to medical care; using another person's identity or insurance details to receive healthcare services or prescription medication unlawfully.

Protect your identity. Protect your future. Stay vigilant, safeguard your personal information, and report suspicious activity immediately.

(c) August 2026

Welcome to AAP Series where ML related nuggets are shared.

Episode 11: What is identity theft?

In this Episode (https://youtu.be/Cdv7VeNhk08) I am sharing with you, what identity theft is, how it happens, and why it remains one of the fastest growing financial crimes today.

Learn how criminals misuse personal information and how you can protect yourself.

(c) May 2026

AAP Series - Episode 11 What is Identity theft? Welcome to AAP Series where ML related nuggets are shared.Episode 11: What is identity theft?In this Episode (https://youtu.be/Cdv7VeNhk08) I am sharing with...

Lookout for episode 12 of AAP Series

In this episode we discuss what drives Identity theft.

Identity thieves are often driven by financial gain, greed, and opportunity. Criminals exploit weak systems or unsuspecting individuals to access money, loans, credit, or sensitive information.

In some cases, economic pressure such as debt or unemployment pushes individuals toward such crimes.

(c) April 2026