--- title: How to empower whistleblowers in your company to prevent internal fraud url: https://www.medius.com/blog/how-to-empower-whistleblowers-in-your-company-to-prevent-internal-fraud/ updated: 2025-03-06T20:28:10Z --- [Back to Blog](https://www.medius.com/blog/) Accounts Payable 2.13.2025 # How to empower whistleblowers in your company to prevent internal fraud Table of Contents 1. Internal organizational fraud 2. Why whistleblowing matters 3. Whistleblowers are scared to report fraud 4. Get a whistleblowing policy and empower your team 5. Whistleblowing policy + AI-powered fraud prevention in accounts payable: the gold standard 6. Get smart about fraud with AI-backed technology 7. More fraud prevention strategies Hear what's covered in this article: * * * Research shows that whistleblowers hesitate to report fraud– a significant challenge to address. Earlier this year, we shared the [Top challenges for accounts payable and finance professionals in 2024](https://www.medius.com/blog/top-challenges-for-accounts-payable-and-finance-professionals-in-2024/ "Top challenges for accounts payable and finance professionals in 2024"), based on [Medius and Censuswide’s 2024 Financial Census](https://www.medius.com/resources/guides-reports/financial-professional-census-report-2024/ "Financial Professional Census Report 2024"). The annual research highlights the key issues today’s finance teams are up against, which include invoice fraud, deepfake scams, internal fraud and whistleblowing fears, and talent retention. We also did a deeper dive into [deepfake scams in accounts payable](https://www.medius.com/blog/what-is-deepfake-fraud-in-accounts-payable-and-how-can-you-prevent-it/ "What is Deepfake fraud in accounts payable, and how can you prevent it?") and how to prevent them. Now, let’s look closely at another crucial yet often overlooked fraud prevention tactic for combatting internal fraud: **whistleblowing**. [AI-backed accounts payable (AP) automation](https://www.medius.com/solutions/medius-accounts-payable-automation/ "Medius Accounts Payable Automation") helps reduce fraud risk, but whistleblowers are truly unsung heroes in keeping financial integrity intact. Yet, they often hold back on reporting what they see for fear of recrimination. Read on to see why whistleblowing is an important element in your fraud protection plan and how you can empower your team. ## Internal organizational fraud happens. What you should know. Sometimes referred to as occupational fraud, internal fraud happens when an employee, manager, or executive tricks their own organization. Think of common schemes you hear like embezzlement, tax cheating, and lying to investors and shareholders. According to the [Association of Certified Fraud Examiners](https://www.acfe.com/-/media/files/acfe/pdfs/rttn/2024/2024-report-to-the-nations.pdf) (ACFE), internal fraud accounts for at least five percent of revenue loss. That may not sound like much, but it's a median loss of $145,000 per case, and an average loss per case is $1.7 million. It happens more often than you think, and likely more than the statistics show – because there is a lot that is not caught. ## Why whistleblowing matters Fraud costs businesses billions each year, with scams from asset misappropriation to financial statement fraud. While financial controls can spot some discrepancies, fraudsters are becoming increasingly clever, using tactics that slip past detection. That’s where whistleblowers come in. Employees, customers, and external partners who notice suspicious behavior are often our first line of defense. A whistleblower’s insider knowledge can reveal fraud that technology might overlook. Data from ACFE says that when internal fraud is flagged, the most common way it’s reported is by another internal employee. A staggering **43 percent of frauds were detected by tips**, three times more than the next common method. ### A few more internal fraud stats to keep in mind: A typical fraud case lasts 12 months before detection Asset misappropriation schemes are the most common, representing 89% of cases Financial statement fraud is the least common but most costly, costing $766,000 median loss Billing schemes represent 22% of all cases Check and payment tampering represent a $155,000 median loss Billing schemes represent a $100,000 median loss There’s a lot at stake, which is why it’s important to take all fraud prevention steps, including whistleblowing. ## But whistleblowers are scared to report fraud Research from [Medius’s 2024 Financial Census](https://www.medius.com/resources/guides-reports/financial-professional-census-report-2024/ "Financial Professional Census Report 2024") raised a significant challenge to the surface: fear of reporting internal fraud. More than [80 percent](https://www.medius.com/financial-census/whistleblowing/ "Whistleblowing") of financial professionals stay silent on suspected fraud for fear of retaliation. More than half of professionals like yours in finance and accounts payable noted they witnessed internal fraud in the workplace, but they didn’t report it. Why? They are scared of repercussions – getting fired, getting written up, and being ostracized. Think of your own organization's employees – how are whistleblowers empowered or protected? Do your employees feel comfortable reporting potential internal threats? These are questions to ask and processes to evaluate. The first step is to implement a whistleblowing policy. ## Get a whistleblowing policy and empower your team The mere existence of whistleblower policies within an organization can deter potential fraudsters. More importantly, you should empower your team with the confidence to report. Knowing that employees are empowered and encouraged to report misconduct fosters an environment of accountability. [More than a staggering 93 percent](https://www.medius.com/financial-census/whistleblowing/ "Whistleblowing") of workers say they would feel more comfortable if they had more evidence, and 48 percent say they’d speak up if they thought the legal system protected them better. Having fraud prevention software and solutions is important, but so are people. People often spot patterns, behaviors, and red flags that sometimes systems overlook. For example, if an employee notices a recurring issue with vendor payments or sees strange invoice patterns and reporting those observations could help uncover fraud before it affects the business. **A few important things to build into your whistleblowing policy:** ### Confidentiality Protecting the identity of whistleblowers is essential to encourage reporting without fear of retaliation. ### Clear reporting channels Employees should know how and where to report concerns, whether through internal channels or third-party platforms. ### Training & awareness Regular training can help employees understand what constitutes fraud and how to report it. ### Non-retaliation protections A zero-tolerance policy against retaliation ensures that whistleblowers are not punished for speaking up. ## Whistleblowing policy + AI-powered fraud prevention in accounts payable: the gold standard Employees need to feel safe and empowered to report internal fraud, but they also need to be equipped with [fraud prevention tools and automation](https://www.medius.com/solutions/fraud-risk-detection/ "Fraud & Risk Detection") that give them confidence and support. **According to Jim Lucier, CEO of Medius,** “White collar crime is on the rise, and no organization is safe. Employees are the last line of defense against fraud, but confidence to report suspicious activity is declining. AI anomaly-detection technology can provide employees with the evidence and assurances they need to be more forthcoming. Building a culture where employees feel comfortable reporting their suspicions could save organizations millions in the long run.” ![Jim Lucier, Chief Executive Officer](https://www.medius.com/media/gcbbxrk0/medius-jim-lucier-bean-lasso-4.png?rmode=max&width=372&height=0&v=1daa894e68f5430) ## Get smart about fraud with AI-backed technology. Medius Fraud & Risk Protection adds the ultimate protective barrier against fraud and risk for your organization’s finances. This enhanced protection against fraud fights fraud with the benefit of AI-backed technology, so you can trust that only real invoices are being paid to the correct suppliers, and that your company’s hard-earned profits are safeguarded against bad actors and potential threats. Read our product quick guide to learn more. [Get the Guide](https://www.medius.com/resources/product-brochures/medius-fraud-risk-detection-product-guide/ "Medius Fraud & Risk Detection Product Guide") [!\[Medius Fraud and Risk Detection brochure cover\](https://www.medius.com/media/kx4myimy/resource-menu_ap-fraud.png?rmode=max&width=372&height=0&v=1dd13cd32f01080)](https://www.medius.com/resources/product-brochures/medius-fraud-risk-detection-product-guide/) Want to learn more about fraud prevention strategies and what Medius is doing to combat fraud in accounts payable? Get the stats on whistleblowing [Go now](https://www.medius.com/financial-census/whistleblowing/) Seven Red Flags and Prevention Tips for Detecting AP Fraud [Read blog](https://www.medius.com/blog/seven-red-flags-and-prevention-tips-for-detecting-accounts-payable-fraud/) Listen to the Accounts Deceivable podcast for tips, tricks and real stories [Listen now](https://www.medius.com/medius-podcast-series/) #### The Financial Professional Census Explore hurdles facing finance professionals today and learn how to overcome them in our research-backed Financial Professional Census report. [Get the report](https://www.medius.com/resources/guides-reports/financial-professional-census-report-2024/ "Financial Professional Census Report 2024") #### Ardent Partners' State of AP in 2026 AI is changing what AP teams can do, and fast. Get leading analysts at Ardent Partners' take on where the industry is headed. [Get the report](https://www.medius.com/resources/guides-reports/ardent-partners-state-of-ap/ "Ardent Partners State of AP") #### Webinar: Preparing for agentic AI in AP In this webinar with SSON, see how leading finance teams are moving from automation to autonomous AP, with real governance built in. [Watch the webinar](https://www.medius.com/resources/events-and-webinars/through-trust-and-governance-sson/ "Through trust and governance SSON") #### Discover accounts payable benchmarks Learn the efficiency metrics that matter for AP teams and the benchmarks derived from thousands of Medius customers around the globe. [Get the report](https://www.medius.com/resources/guides-reports/ap-benchmark-report/ "AP Benchmark Report") #### Watch a demo Get a first-hand look at Medius AP Automation, Analytics, and Pay with our 13-minute product demo. [Watch now](https://www.medius.com/watch-a-demo/#recorded "Watch a demo") ## Related Posts [8.6.2026 AP Automation Why global expansion creates AP complexity faster than expected](https://www.medius.com/blog/why-global-expansion-creates-ap-complexity-faster-than-expected/) [8.6.2026 AP Automation How can manufacturers improve invoice matching and PO matching?](https://www.medius.com/blog/how-can-manufacturers-improve-invoice-matching-and-po-matching/) [8.6.2026 AP Automation What happens when invoice matching fails in manufacturing?](https://www.medius.com/blog/what-happens-when-invoice-matching-fails-in-manufacturing/) [8.4.2026 AP Automation Best AP automation software for automated invoice matching](https://www.medius.com/blog/best-ap-automation-software-for-automated-invoice-matching/) [8.4.2026 AP Automation Choosing the best AP automation software for complex approval workflows](https://www.medius.com/blog/choosing-the-best-ap-automation-software-for-complex-approval-workflows/) [8.3.2026 AP Automation Improving freight invoice accuracy with AP automation](https://www.medius.com/blog/improving-freight-invoice-accuracy-with-ap-automation/) Previous Next [View All Posts](https://www.medius.com/blog/) ## Ready to transform your AP? [Book a Demo](https://www.medius.com/book-a-demo/ "Book a Demo") [Contact Us](https://www.medius.com/contact-us/ "Contact Us")