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industry of organizations
We looked at the industry classification of the organizations victimized by the fraud cases in our study. It is important to view
this data as a representation of the companies that had CFEs investigate internal fraud cases within the last two years, rather
than as an indication of which industries are more or less likely to be victimized by fraud. However, the following tables do
draw attention to some differences in the frequency and cost associated with occupational frauds among different sectors.
For example, the banking and financial services industry had the most cases, accounting for more than 16% of the frauds
reported to us. The period of time covered by our survey — calendar years 2008 and 2009 — was filled with news stories of
fraud in the banking sector, so this finding is not unexpected. In contrast, the mining industry experienced the fewest frauds
in our study, but those cases caused a median loss of $1 million — by far the largest of any of the industries we examined. 11
Industry of Victim Organizations Industry of Victim Organizations
(sorted by Frequency) (sorted by Median loss)
Number percent Median Number percent Median
industry industry
of Cases of Cases Loss of Cases of Cases Loss
Banking/Financial Services 298 16.6% $175,000 Mining 12 0.7% $1,000,000
Manufacturing 193 10.7% $300,000 Wholesale Trade 42 2.3% $513,000
Government and Public 176 9.8% $81,000 Oil and Gas 57 3.2% $478,000
Administration
Real Estate 57 3.2% $475,000
Retail 119 6.6% $85,000
Agriculture, Forestry, Fishing 27 1.5% $320,000
Healthcare 107 5.9% $150,000 and Hunting
Insurance 91 5.1% $197,000 Manufacturing 193 10.7% $300,000
Education 90 5.0% $71,000 Transportation and 62 3.4% $300,000
Warehousing
Services (other) 88 4.9% $109,000
Technology 65 3.6% $250,000
Construction 77 4.3% $200,000
Construction 77 4.3% $200,000
Technology 65 3.6% $250,000
Insurance 91 5.1% $197,000
Transportation and 62 3.4% $300,000
Warehousing Arts, Entertainment and 49 2.7% $180,000
Recreation
Oil and Gas 57 3.2% $478,000
Banking/Financial Services 298 16.6% $175,000
Real Estate 57 3.2% $475,000
Healthcare 107 5.9% $150,000
Services (professional) 51 2.8% $110,000
Telecommunications 37 2.1% $131,000
Arts, Entertainment and 49 2.7% $180,000
Recreation Utilities 45 2.5% $120,000
Utilities 45 2.5% $120,000 Services (professional) 51 2.8% $110,000
Wholesale Trade 42 2.3% $513,000 Communications/Publishing 16 0.9% $110,000
Religious, Charitable or 41 2.3% $75,000 Services (other) 88 4.9% $109,000
Social Services
Retail 119 6.6% $85,000
Telecommunications 37 2.1% $131,000
Government and Public 176 9.8% $81,000
Agriculture, Forestry, Fishing 27 1.5% $320,000 Administration
and Hunting
Religious, Charitable or Social 41 2.3% $75,000
Communications/Publishing 16 0.9% $110,000 Services
Mining 12 0.7% $1,000,000 Education 90 5.0% $71,000
11 There was a small sample of only 12 cases in this industry, which may impact the reliability of the median loss data.
2010 RepoRt to the NAtioNs ON OccuPATIONAl FRAUD ANd AbuSE | 33