Page 142 - ACFE Fraud Reports 2009_2020

Detecting Occupational Fraud

Detecting the Largest Frauds conceal it. Conversely, the purpose of analyzing the detec-
tion of the cases with the largest losses is simply to help
We also measured the detection methods for schemes that us understand how best to catch the catastrophic fraud as
caused losses of $1 million or more. To some extent, this early as possible.
data will overlap with the owner/executive data shown on
the previous page. However, there is some distinction; not Despite the differing goals of these two analyses, the re-
all $1 million schemes were committed by owner/execu- sults are similar: we again see that tips are the most com-
tives, and conversely, not all owner/executive schemes cost mon form of detection. We also found that the largest
over $1 million. The purpose of analyzing the detection of frauds were less likely to be detected by internal audits or
owner/executive frauds was to help us understand how to internal controls.
detect frauds committed by those in the best position to

Detection Method for Million Dollar Schemes

Tip 44.0% $1,000,000+
34.2%
By 24.4% All Cases
Accident 17.7% 25.4%
Detection Method Controls 12.0% 19.2%
Internal
Audit
20.2%
Internal
External
14.8%
Audit
Notified by 7.7% 12.0%
Police 3.8%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Percent of Cases

Detection of Frauds in Small Businesses
32.2% Small Businesses
Tip 34.2%
By 36.3% All Cases
Accident 11.5% 25.4%
Detection Method Controls 13.6% 18.0%
Internal
Audit
20.2%
Internal
19.2%
External
Audit
Notified by 3.1% 12.0%
Police 3.8%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Percent of Cases

0 ACFE Report to the Nation on Occupational Fraud & Abuse