Page 132 - ACFE Fraud Reports 2009_2020

Victims of Occupational Fraud & Abuse

Banking and Financial Services Banking & Financial Services — 148 Cases

Not surprisingly, two of the three most common schemes Scheme Cases %
in the banking and financial services industry were cash Cash Larceny 29 19.6%
larceny and skimming. These schemes generally involve Non-Cash 23 15.5%
the physical theft of incoming cash and cash on hand (for
example, in a vault). Among the 23 non-cash cases in this Skimming 21 14.2%
industry, the most common type of scheme involved the Billing 18 12.2%
theft of proprietary information about bank customers. Check Tampering 18 12.2%
Wire Transfers 16 10.8%
Government and Public Expense Reimbursements 13 8.8%
Administration Payroll 10 6.8%
Register Disbursements 2 1.4%
Billing schemes (procurement fraud) and non-cash theft
were the most commonly reported forms of asset misap-
propriation in the government and public administration
sector, each occurring in 26 of the 119 cases. Govt. & Public Administration — 119 Cases
Scheme Cases %
Manufacturing Billing 26 21.8%
Approximately one-third of the cases reported from the Non-Cash 26 21.8%
manufacturing industry involved fraudulent billing. Ex- Payroll 25 21.0%
pense reimbursements and non-cash schemes each also
occurred in more than one-fourth of the cases in this in- Expense Reimbursements 23 19.3%
dustry. Skimming 22 18.5%
Check Tampering 14 11.8%
Healthcare Cash Larceny 13 10.9%
Wire Transfers 3 2.5%
Fraudulent billings were also the most common type of
fraud reported among the 89 cases we received from the Register Disbursements 2 1.7%
healthcare industry. False billings occurred in approxi-
mately one-fourth of healthcare cases, and involved a wide
variety of schemes, including submitting false healthcare Manufacturing — 101 Cases
claims and purchasing personal items with company
funds. Scheme Cases %
Billing 34 33.7%
Insurance Expense Reimbursements 29 28.7%
Non-Cash 28 27.7%
Fraudulent billings occurred in nearly 30% of the insur-
ance industry cases we reviewed. These cases were nearly Skimming 16 15.8%
twice as common as the next-most-frequently reported Payroll 13 12.9%
scheme, which was check tampering. Check Tampering 10 9.9%
Cash Larceny 9 8.9%
Wire Transfers 7 6.9%
Register Disbursements 1 1.0%

20 ACFE Report to the Nation on Occupational Fraud & Abuse