Why Third Parties Hold the Key to Uncovering Business Fraud: Harnessing Supplier Insights and Modern Reporting Tools

Third parties are increasingly vital in uncovering business fraud, from supplier kickbacks to short supply of goodsa reality that’s underpinned by the latest statistics from the Association of Certified Fraud Examiners (ACFE). According to their 2025 Benchmarking Report, tips remain the single most powerful tool for detecting fraud, accounting for 43% of cases globally, while internal audits manage to detect only 14%. What’s particularly striking is that a significant portion of these tipsmost halfcom from people outside the organisation, such as suppliers, customers, and other external partners.​

The Outsider Advantage

Fraud is often a hidden crime, perpetrated not just by employees but also through complex interactions with external parties. Supplier kickbacks and short shipments are two of the most common schemes, enabled by the manipulation of procurement processes and relationships. External observers, including suppliers themselves or transport partners, are frequently positioned to spot unusual patterns or suspicious behaviour, such as repeated bypassing of purchasing protocols or unexplained changes in logistic routes.​

The ACFE reports that organisations with robust whistleblower systems detect frauds twice as quickly and with much lower financial losses. Yet, many businesses still channel most of their anti-fraud resources into cyber detection, leaving traditional schemes to exploit weaknesses in procurement, payroll, and invoicing.​

Statistics That Tell the Story

Consistent with prior studies, the ACFE’s latest report estimates that the typical organisation loses 5% of its revenues each year to fraudamounting to a median loss of $145,000 globally per case. Asset misappropriation, often facilitated by falsified invoices or short-supply, accounted for nearly 89% of occupational fraud incidents. The impact is felt most keenly in areas where third parties are present and able to observe process lapses or irregularities.​

Critically, about half of all fraud tips now originate from people external to the organisationindividuals not directly employed, but closely involved enough to witness red flags. These tip-offs are invaluable in surfacing wrongdoing in sales, supply relationships, and logistics, where insider collusion can otherwise mask fraud for months or even years.​

Leveraging Continual: Maximising Third Party Engagement

Continual’s compliance platform is engineered to help organisations harness the power of third-party vigilance. It does this by actively monitoring third parties for GRC (governance, risk, and compliance) requirements and automating outreach to them throughout the procurement and payment lifecycle.

Key features include:

• Automated email prompts that invite third-party suppliers and contractors to report suspicious activity or short-supply issues using clear, secure channels.​
• Embedded reporting links within accounting systems to appear on purchase orders and invoices, enabling third parties to easily flag irregularities right at the point of transaction.​
• Safe, anonymous whistleblower options that protect identity, boosting confidence and participation among suppliers and customers.​

What sets Continual apart is its integration within existing business processes: rather than relying solely on employees, the platform leverages natural moments of engagement, such as confirming a shipment or processing payment, to remind and encourage all parties to speak up if something doesn’t look right. This “point-in-time” prompting, embedded in routine interactions, significantly increases the chances of surface-level and deep-seated fraud being flagged early.

Empowering a Speak-Up Culture Beyond the Office

Encouraging tip-offs from third parties isn’t just about providing reporting toolsit’s about building trust. Continual’s platform makes reporting fraud as simple and intuitive as confirming a delivery or submitting an invoice, removing barriers and safeguarding confidentiality. By bringing compliance prompts directly into the workflow, suppliers are empowered to act immediately when they spot something amiss.​

With an estimated 5% of revenue lost to fraud each year, and fraudsters’ methods continuing to evolve, no business can afford to ignore the unique perspective and reach that third parties have. By equipping these external partners with secure channels and proactive messaging, businesses elevate their capacity to detect and address fraud in its many formsfrom backhanders and false billing, right through to missing goods.​

Continual stands at the forefront of this movement, maximising every opportunity to surface wrongdoing by leveraging existing channels and real-world process touchpoints. The platform doesn’t just wait for an annual audit or whistleblowing campaign; it positions every transaction as a chance for honest parties to speak up, helping organisations protect their reputations, finances, and futures in an increasingly interconnected landscape.

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