Page 225 - ACFE Fraud Reports 2009_2020

Position of Perpetrator — Frequency

2008
39.7%
Employee 41.2% 2006
Position of Perpetrator Manager 37.1%

39.5%
Owner /
Executive 23.3%
19.3%
0% 10% 20% 30% 40% 50%
Percent of Cases

Position of Perpetrator — Median Loss

2008
$70,000
Employee $78,000 2006
Position of Perpetrator Manager $150,000

$218,000

Owner /
Executive $834,000
$1,000,000
$0 $200,000 $400,000 $600,000 $800,000 $1,000,000
Median Loss

Frauds committed by employees were also discov- Median Duration of Frauds
ered much sooner than those involving their superi- by Position of Perpetrator
ors. in fact, frauds in which the primary perpetrator Median Months
was a manager, owner, or executive lasted a median Position to Detection
duration of two years — twice as long as those cases Employee 12
involving lower-level employees. This discrepancy Manager / Supervisor 24
is likely due to the fact that most managers, execu- Owner / Executive / Officer 24
tives, and owners have greater authority to circum-
vent or override controls, which makes it much
harder to detect a fraud.

49

2008 Report to the Nation on occupational Fraud and abuse