Page 115 - ACFE Fraud Reports 2009_2020

Table of Contents

Executive Summary ...........................................................................................................................................................................4
Introduction ........................................................................................................................................................................................6
What is Occupational Fraud?
Measuring the Costs of Occupational Fraud ................................................................................................................................8
Distribution of Dollar Losses
How Occupational Fraud is Committed .......................................................................................................................................10
Asset Misappropriation — Cash vs. Non-Cash
How Cash is Misappropriated
How Non-Cash Assets are Misappropriated
How Financial Statements are Falsified
How Corruption Occurs
Victims of Occupational Fraud & Abuse ......................................................................................................................................18
Industries Affected in the Study
Methods of Fraud Based on Industry
Industries with the Most Corruption Cases
Industries with the Most Financial Statement Fraud Cases
Types of Organizations
Size of the Victim Organization
Detecting Occupational Fraud ........................................................................................................................................................28
How Fraud is First Discovered
Detecting Fraud by Owners and Executives; the Largest Frauds; in Small Business; in Not-for-Profit Organizations;
in Government Agencies; in Publicly Traded Companies; and in Privately Held Companies
Limiting Fraud Losses.......................................................................................................................................................................34
Most Common Anti-Fraud Measures
Effectiveness of Anti-Fraud Measures
Anti-Fraud Measures by Industry
Anti-Fraud Measures in Small Business and Not-for-Profit Organizations
The Perpetrators ................................................................................................................................................................................42
The Effect of the Perpetrator’s Position; Annual Income; Tenure; Gender; Age; Education; Department; Collusion; and
Criminal Histories
Case Results ........................................................................................................................................................................................56
Criminal Prosecutions
Prosecution Rates Based on Industry
Why do Organizations Decide Not to Prosecute?
Civil Lawsuits
Recovering Losses Caused by Fraud
Methodology ......................................................................................................................................................................................60
About the ACFE ...............................................................................................................................................................................62

ACFE Report to the Nation on Occupational Fraud & Abuse