Australian insurers and brokers are being encouraged to assist business clients in mitigating exposure to financial crime, as industry warnings highlight increased risks associated with internal fraud and cyber-related threats.
Berkley Insurance Australia (BIA) has published new guidance outlining how businesses can recognise and address bookkeeping fraud – a form of internal financial misconduct that continues to pose risks to organisational stability.
The document is also being recommended as a resource for insurance professionals advising commercial policyholders.
The guidance identified several behavioural and procedural indicators of potential fraud. These include:
The report also pointed to limited oversight in accounting processes, where single employees may have control over multiple stages of financial approvals, increasing vulnerability to misconduct.
Changes in employee behaviour – such as sudden increases in personal spending or reluctance to share financial responsibilities – can also signal risk.
BIA recommends a multi-pronged approach for detecting fraud, including regular audits, transaction analysis, and ongoing employee education on ethical conduct and reporting channels.
To help prevent fraudulent activity, the guidance stresses the importance of separating financial duties, conducting routine reconciliations, enforcing approval workflows, and limiting access to sensitive data using the principle of least privilege.
BIA also highlighted the role of external reviews in providing independent oversight.
In parallel with these recommendations, Kroll’s 2025 Financial Crime Report outlined how Australian financial services executives are increasingly concerned about broader financial crime risks.
According to the report, 64% of Australian respondents expect such risks to intensify this year, influenced by factors like cybercrime, artificial intelligence misuse, regulatory shifts, and geopolitical uncertainty.
The study revealed that 80% of local participants view criminal applications of AI as a growing issue, while 60% cited cybersecurity vulnerabilities. Other concerns included financial strain on individuals and an uptick in predicate offences, such as fraud and money laundering.
Despite heightened awareness, the report found a lack of confidence in current compliance programs. Only 16% of executives said their organisation’s controls were “very effective,” and less than one-third believed they had invested sufficiently in risk mitigation technologies. Governance gaps were also evident, with just 20% citing strong internal oversight structures.
Digital asset-related risks continue to pose challenges, with 52% of respondents noting them as significant. However, only 28% said their institutions had compliance programs equipped to manage these threats. Some 24% reported plans to adopt new measures to address crypto-related financial crime.
Concerns around supply chain integrity and cyber risks remain prevalent, with only 36% expressing strong confidence in their ability to manage these exposures. Political instability and the growing use of AI in cyberattacks were also flagged as key contributors to the financial crime landscape.
Security professionals suggest that prevention efforts should prioritise education, in addition to technical defences.
