WORKPLACE HIERARCHY IS DRIVING A NEW FRAUD RISK IN AUSSIE BUSINESSES

It appears the real vulnerability may sit in something far less technical and far more human.

As workplace hierarchy tightens decision-making in many organisations, new research suggests it is also quietly opening the door to fraud risk, with employees increasingly reluctant to question those above them.

A new report from Eftsure has uncovered a striking cultural blind spot inside Australian businesses.

While most companies invest heavily in systems and safeguards, it appears the real vulnerability may sit in something far less technical and far more human.

Why is the workplace hierarchy creating a fraud risk?

At the centre of the issue is the workplace hierarchy itself. According to the research, only 25 per cent of employees feel comfortable questioning a payment request from a senior executive. It is a small number with potentially large consequences.

In practice, that means requests that appear urgent or authoritative can move through organisations without the scrutiny they would otherwise receive.

Add in increasingly sophisticated scams, including impersonation of executives, and the risk compounds quickly.

Nearly one in five employees said hierarchy directly makes it harder to challenge suspicious requests, pointing to a structural issue rather than a simple training gap.

Workplace hierarchy and the growing disconnect in fraud awareness

The research also highlights a widening disconnect between leadership and those on the front line.

While senior leaders are responsible for setting policy and controls, 91 per cent of employees believe leadership does not fully understand how payment fraud actually happens.

At the same time, 73 per cent of employees say they are not fully aware of the tools available to help prevent scams.

It paints a picture of organisations where responsibility is clear on paper, but confidence and clarity are less so in practice.

That gap matters. Fraud is no longer just about weak passwords or outdated systems. It is increasingly about behaviour, pressure and timing.

How cybercriminals are exploiting workplace hierarchy

Cybercriminals, it seems, understand workplace hierarchy better than many organisations do. Rather than trying to break systems, they are learning to work within them.

By mimicking senior executives or inserting themselves into approval chains, fraudsters create a sense of urgency and authority that discourages questions.

The result is often a fast decision made under pressure, exactly what attackers are counting on.

Arjun Adhia, Chief Financial Officer at Eftsure, says the issue goes beyond technology.

“Cybercriminals understand workplace dynamics incredibly well. They know if payment requests come through from your manager or a senior executive, employees are far more likely to feel the pressure to act quickly without asking any questions,” Adhia said.

“Hierarchy can unintentionally create blind spots in payment approval processes. When employees don’t feel comfortable challenging requests from senior leaders, it creates the exact environment fraudsters are looking to exploit.”

Rethinking workplace hierarchy in the fight against fraud

The findings point to a broader shift that many businesses may need to confront. As fraud tactics evolve, traditional controls may no longer be enough on their own.

Instead, organisations may need to rethink how workplace hierarchy operates within financial processes, creating environments where questioning is not just accepted but expected.

Because in the end, the biggest risk may not be the sophistication of the scam, but the silence that allows it to succeed.