When did you last review your reporting software? The problems to watch out for with a traditional whistleblower service.

Implementing a whistleblowing platform is a critical component for any business looking to create a safe, compliant workplace. This is the type of system that mitigates the risk of misconduct, improves employee trust, and provides a safe space for people to flag issues. But just by implementing a system alone isn’t enough to protect your workplace.

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Many companies mistakenly believe that their traditional reporting platform is providing them with means to protect their business. Unfortunately, in many situations, their whistleblowing offering is at best outdated, at worst, unusable.

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To understand the problem better, it’s a good idea to go back to a big milestone in whistleblowing service history: The 2001 Enron scandal.

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After this event, which saw the collapse of the energy giant and its accountancy firm, a piece of legislation called the Sarbanes Oxley Act 2002 was brought in. Known as SOX, this was a federal law that established sweeping auditing and financial regulations for public companies. A component of which was for these organisations to have a whistleblowing hotline system.

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This new law prompted a wave of new services offering independent whistleblowing reporting channels via a phoneline. While these covered the bases of what was required under SOX, innovation, new services and changing behaviours meant that a lot of the tech, cost structures and report handling processes soon became obsolete.

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Considering the fast-moving nature of tech, and the fact that whistleblowing software is often a compliance must-have, it’s critical for all businesses to carry out routine checks of their reporting systems.

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Why all whistleblowing services needs regular reviewing

Many organisations have had a whistleblowing policy for a long time. Over the years these systems were put in place, social, technological and regulatory changes have taken place. 

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Reports of misconduct may be non-existent in your business. But is that because your business has watertight systems in place and a 100% trustworthy workforce? Or, is it that perhaps your system hasn’t been usable for potential whistleblowers to flag issues?

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From changes to the way we communicate, to obsolescent tech - has your whistleblowing system adapted to your modern workplace? 

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Here are a number of reasons why your traditional system might be letting you down:

Tech has transformed how we communicate: as smartphones, social media and digital tools have grown in prevalence, the way we communicate has changed. In a more digitally-native society, people are less inclined to speak via a phoneline, preferring to use messaging apps, voice notes and online tools to express themselves. Reflecting these trends is the ACFE’s report into occupational fraud, which talks about the rise of online reporting, stating that web-based/online reporting rose from 24% of complaints in 2016 to 40% in 2024. However, whistleblowing via telephone has decreased across the same timeframe, from 40% to 30%. 

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Traditional processes have huge drawbacks: The other risk with the traditional telephone hotline is that many are set up in costly, highly-structured call centres, where call handlers follow a script. Many users of these systems complain that reports often have limited information contained within them, and without a direct feedback mechanism, it can sometimes be difficult to effectively progress the complaint.  

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Existing tech is a poor fit for modern business: The tech and processes behind the telephone service have not advanced with newer ways of working and handling disclosures. Many of these pieces of technology don’t consider organisational integration (e.g. agile access controls) with newer technologies, whistleblower user experience and different mechanisms to progress the complaint (advice, education, refer etc).

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Your ‘compliant’ system might no longer be so: Simply having a system in place doesn’t necessarily mean you’re conforming to your legal obligations. Laws and regulations governing whistleblowing often evolve, such as the EU Whistleblower Protection Directive or industry-specific rules. Regular reviews ensure the software remains compliant with these requirements, avoiding legal risks for your organisation.

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Old tech can often equals big security risk: Whistleblowing software often handles sensitive information, and traditional systems have been known to be easily targetable. Modern software can massively reduce this kind of vulnerability, ensuring robust protection against data breaches or unauthorised access.

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Is your system up to modern day demand? As your business grows, the volume of reports or the complexity of cases going through your business might increase. This is why it’s essential that your software helps ensure it performs efficiently, scales effectively, and meets organisational demands.

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A regular focus on your whistleblowing system sends out a good signal: When your workforce is aware of updates, improvements and regular reviewing of the software that is so important to the safety of their environment, it reinforces trust in both you as employers and the system they might need to use one day.

Case Study 

Organisation XYZ was a provider of a traditional independent whistleblower telephone service. They subsequently updated their primary complaint intake method, from telephone to online reporting. 

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The organisation did a lot of internal work with its client base in designing a technology interface that could be easily used as online reporting only.

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Over a 12-month period, XYZ’s clients complaints went from 85% telephone, 15% online to 74% online and 26% telephone. 

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Most telling however was the extra volume of complaints received over the same 12-month period, with a 62% increase across the client base that used the platform.

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This adaptation to more modern user requirements clearly shows better useability. But it’s important to remember the traditional methods were not removed - the ability to call through an issue remains, as there was clearly a requirement for it. The system has - through communication with its clients - simply added more popular methods of contact to its usage. 

Whistleblowing software that moves with your business’s requirements

Like all workplace software, a business’s whistleblowing system needs regular reviewing for efficiency, useability and reliability. You may discover that different channels of reporting are needed, even though there still is a place for in-person and telephone reporting. But it’s key to closely assess the market and your existing provider and carefully consider the right solution for your risk profile and workforce.  

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At Veremark, we offer an end-to-end secure solution that focuses on well-designed online reporting (to help our clients collect good quality information) and effective resolution through a best practice policy framework.

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Want to learn more? Head here.