Page 136 - ACFE Fraud Reports 2009_2020

Victims of Occupational Fraud & Abuse

Types of Organizations Frequency and Median Loss Based
on Organization Type of Victims
In addition to measuring the industries of the affected
organizations, we also gathered data on the organization $250,000
types of the victims: were they privately held companies,
publicly traded corporations, not-for-profit organizations,
or government agencies? $200,000

Our Report represents a good cross-section of organiza- $210,000 $200,000
tion types. Private companies were most heavily repre- $150,000
sented at 36.8%, while not-for-profit organizations had Median Loss
the lowest representation at 13.9%.

The following chart shows the distribution of cases among $100,000
the four organization types, and also illustrates the median $100,000 $100,000
loss for cases in each group. As we can see, privately held $50,000
and publicly traded companies were not only the most
heavily represented organization types, they also suffered
the largest losses, at $210,000 and $200,000 respectively. $0
Private Public Government Not-for-
Company Company (17.6%) Profit
Methods of Fraud in Not-for-Profit Organizations (36.8%) (31.7%) (13.9%)
There is a great deal of anecdotal evidence suggesting Organization Type
that non-profit organizations are uniquely susceptible to (percent of cases)
fraud, and we frequently receive requests for information
concerning the methods by which fraud occurs in not-for-
profit organizations. The following table lists the most
commonly reported schemes among the 147 not-for-prof- Not-For-Profit Organizations — 147 Cases
it cases in our study. Corruption, billing fraud and expense Scheme Cases % 8
reimbursement fraud were all cited in over 25% of the not- Corruption 43 29.3%
for-profit cases we reviewed.
Billing 42 28.6%
Expense Reimbursements 42 28.6%
Check Tampering 36 24.5%
Skimming 33 22.4%
Cash Larceny 26 17.7%
Non-Cash 21 14.3%
Payroll 19 12.9%
Fraud Stmt 8 5.4%
Wire Transfers 8 5.4%
Register Disbursements 1 0.7%

8 The sum of percentages in this table exceeds 100% because several cases involved multiple methods of fraud.

ACFE Report to the Nation on Occupational Fraud & Abuse