Page 159 - ACFE Fraud Reports 2009_2020

In addition to examining the frequency of frauds based The largest losses occurred in purchasing, which had me-
on their department of origin, we also looked at the losses dian losses of $1 million for 25 cases. Frauds by executives
associated with frauds from various departments. The and upper management were the next highest category at
following table shows the median loss for fraud schemes $900,000. Schemes committed by employees in sales, hu-
based on the department in which the principal perpetra- man resources and customer service tended to be among
tor worked. the least costly.

Median Loss Based on Perpetrator’s Department

Purchasing (3.0%) $1 million
Exec/Upper Mgt. (20.9%) $900M
Marketing/PR (1.6%) $315M $395M $650M
Department (percent of cases) Manufacturing & Production (3.8%) $138M $213M $310M
Finance (4.1%)
R&D (1.2%)
Board of Directors (1.2%)
$245M
Legal (1.5%)
$199M
Accounting (30.3%)
IT (2.4%)
$100M
Warehousing/Inventory (2.8%)
$96M
Sales (14.0%)
HR (1.8%) $64M
Customer Service (11.2%) $50M
Internal Audit (0.2%) $38M
$0 $200,000 $400,000 $600,000 $800,000 $1,000,000
Median Loss

ACFE Report to the Nation on Occupational Fraud & Abuse