Date published: 21 April 2026 | Author: Nina Rossi

Insider fraud is becoming a major concern for Australian companies. There is a growing trend in which corporations are held responsible for the dishonest actions of employees, contractors, or even external partners.

The core issue is that a business can face liability even when senior leaders/management did not know about the misconduct. Regulators and courts are increasingly focused on whether the organisation had proper systems in place to prevent fraud, detect unusual behaviour and respond quickly when something goes wrong. If those systems are weak or poorly enforced, the company itself may be treated as having enabled the wrongdoing.

This shift reflects a broader expectation that businesses must actively manage insider risk. It is no longer enough to rely on trust or assume that misconduct will be obvious. Fraud today often involves small but repeated actions, misuse of access, or manipulation of internal processes that only become visible when controls fail.

This is also particularly timely for any business, i.e. accountants and brokers, who will be expected, from 1 July 2026, to comply with and have systems in place to address the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

What you should think about

• Whether your business has clear policies for handling money, data and authority
• Whether staff access levels match their actual responsibilities
• Whether you have regular internal checks that would detect unusual transactions
• Whether your contracts with contractors and suppliers include strong compliance obligations
• Whether you know what to do if you suspect internal misconduct

You’re in control when you understand your legal position. Contact Rossi Law today to get the clarity and advice you need to move forward.