Confidentiality Concerns: Employees are worried about the confidentiality of the current fraud reporting process. Addressing these concerns is crucial to ensure that employees feel safe reporting potential fraud.

Independent Reporting: Outsourcing the reporting function to an independent third party can enhance confidentiality and impartiality, making employees more comfortable reporting fraud.

Credibility and Trust: An independent third party can provide a neutral and trusted channel for reporting, which can increase the credibility of the fraud reporting system.

Best Practices: Using third-party services for reporting fraud is a common best practice in compliance and risk management to ensure anonymity and reduce the fear of retaliation.

References: This approach is supported by guidelines from the Association of Certified Fraud Examiners (ACFE) and best practices in corporate governance and compliance management.