Page 182 - ACFE Fraud Reports 2009_2020

introduction

The term “occupational fraud” may be defined as: “The use of one’s

occupation for personal enrichment through the deliberate misuse or
misapplication of the employing organization’s resources or assets.”

This definition is very broad, encompassing a wide since the inception of the Report to the Nation more
range of misconduct by employees, managers, and than a decade ago, we have released four updated
executives. occupational fraud schemes can be as editions — in 2002, 2004, 2006, and the current
simple as pilferage of company supplies or as com- version in 2008. like the first report, each sub-
plex as sophisticated financial statement frauds. sequent edition has been based on detailed case
information provided by certified Fraud examin-
occupational fraud and abuse is a significant prob- ers (cFes). With each new edition, we add to and
lem faced by organizations of all types, sizes, lo- modify the questions we ask of our survey partici-
cations, and industries. unfortunately, it is also a pants in order to enhance the quality of the data we
problem that will not be easily solved. one of the collect. This evolution of the report has enabled us
acFe’s primary missions is to educate the pub- to continue to draw more meaningful information
lic and anti-fraud professionals about the serious from the experiences of cFes and the frauds they
threat occupational fraud poses. encounter.

in 1996, acFe released the first Report to the Na- in this, our fifth edition of the Report to the Nation,
tion on Occupational Fraud and Abuse to provide an we have built on the framework used in past editions
informative look into the immense costs imposed and have added discussions of several topics that we
by occupational fraud. at the time, the report was believe enhance the value of the report, including a
the largest known privately funded study on the more in-depth analysis of the victim organizations’
subject. The stated goals of the first report were to: internal control systems and an examination of the
behavioral warning signs displayed by perpetrators
• summarize the opinions of experts on the during the course of their fraud schemes. We be-
percentage and amount of organizational lieve these inclusions, in addition to the fine-tuning
revenue lost to all forms of occupational fraud of the information published in previous versions,
and abuse
render the current report the most comprehensive

• examine the characteristics of the employees and educational edition to date.
who commit occupational fraud and abuse

• determine what kinds of organizations are
victims of occupational fraud and abuse

• categorize the ways in which serious fraud and
abuse occurs

6