Cracking down on food fraud: is a better whistleblowing system the answer?

With food fraud incidents increasing around the world, there’s an urgent need for authorities to find more effective solutions. Could whistleblowing be the key?  

Food fraud is at a record high. 

It’s thought that adulterated or fraudulent products now affect as much as one per cent of the global food industry at a cost of $10-$15 billion a year. Some experts put that as high as $40 billion.  

Only last year, Operation OPSON, a joint Europol-Interpol initiative, seized 27,000 tonnes of adulterated or fraudulently labelled food in less than six months. The haul was made up of everything from rotten tuna to fake vodka and contaminated multivitamins.  

On the one hand, heightened pressures to maintain availability and a reduction in physical checks during the pandemic paved the way for fraudsters to infiltrate supply chains more easily, with a 37% rise in incidents in 2020. The conflict in Ukraine, Brexit and high commodity prices have all compounded this vulnerability. Then there are regional drivers, such as a lack of oversight and safety checks in sub-Saharan Africa, combined with rapid population growth.  

But whatever the cause, the impact on consumer trust in the credibility of supply chains is stark. In some global markets, confidence in the safety of supermarket produce has fallen by as much as a fifth in the face of high profile food safety scares.     

" In some global markets, confidence in the safety of supermarket produce has fallen by as much as a fifth” 

Now, with current efforts failing to combat the increase in incidents, there’s hope that a new push for whistleblowers to come forward may prove more effective.   

Ramping up pressure on company insiders  

In October this year, the UK’s Food Standards Agency (FSA) announced its intentions to ramp up pressure on whistleblowers to help lift the lid on fraud within the industry.  

As part of a new Food Fraud Working Group, the government body said it planned to launch a new freephone number for its fraud hotline to make it easier for people to get in touch and share concerns. It also said it would work directly with industry to urge whistleblowers to come forward.  

“Together, we’re making it easier to share intelligence and information by helping people who work in the food system to share their concerns with us freely and confidentially,” said its CEO, Emily Miles.  

Until now the industry has largely focused on emerging technologies to either detect adulteration or provide greater traceability across supply chains to combat food fraud. These include verification tools that can confirm provenance, portable testing solutions and DNA analysis. It’s estimated that digital ledgers, such as blockchain, meanwhile could stem losses from food fraud by as much as $31bn by 2024. 

"Until now the industry has largely focused on emerging technologies to either detect adulteration ” 

Whistleblowing has played a limited role, however.  

There is legislation in place that protects and even rewards insiders. In the US, those who tip off authorities about food safety violations may be in line for substantial payouts; France has developed regulations to protect whistleblowers in relation to corruption, as well as for public health and safety; and Switzerland is in the process of following suit.  

But currently these frameworks are grossly underutilised by the food industry, industry experts argue.  

Efforts by the likes of the FSA to make it easier for whistleblowers to come forward could therefore spark significant change.   

Tapping into firsthand knowledge 

Information-sharing is already at the crux of efforts to combat food crime.  

In 2019, Operation Opson VIII, seized more than $117m worth of fraudulent food and drink and led to 672 arrests worldwide in an investigation worked on by authorities from more than 70 different countries.   

Making greater use of company insiders could therefore act as a complementary tool in boosting food security.  

It’s already proven a gamechanger in other sectors, such as financial fraud. In one study by PwC, researchers found that professional auditors only detected 19% of fraudulent activities at private corporations. Whistleblowers, by contrast, detected and exposed 43%.  

In food, this impact could be even greater. The vast scale and complexity of food and drink supply chains makes it impossible for regulators to oversee all activity. Even a well-funded regulatory body, such as the US Food and Drug Administration, samples less than one per cent of all imported food. Mechanisms that empower workers to proactively come forward with firsthand information could therefore be transformative.  

“Professional auditors only detected 19% of fraudulent activities at private corporations. Whistleblowers, by contrast, detected and exposed 43%." 

To achieve this though there will need to be a clear framework put in place by organisations such as the FSA to provide protections and even incentives to whistleblowers.  Without these assurances it’s highly unlikely workers will risk threats to both their personal and professional lives even where consumer safety is at risk.  y.” 

Turning the tide  

As the infiltration of fraudulent food within global food and drink supply chains shows no signs of slowing down, a push for greater reliance on whistleblowing could be a welcome move.  

Though there’s no silver bullet, such measures could help inform international criminal investigations and provide authorities with the insider information they need to turn the tide. 

If you'd like to learn more about how effective food security can help build stronger, more resilient food systems, watch our webinar on the subject below.