Page 301 - ACFE Fraud Reports 2009_2020

Age of Perpetrator — Median loss

$1,000,000 2010
$974,000

$800,000 2008

Median Loss $600,000 $636,000

$400,000

$120,000 $127,000 $145,000 $344,000 $321,000 $360,000 $428,000 $435,000
$200,000 $113,000 $270,000 $265,000
$15,000 $25,000 $60,000 $50,000 $200,000

$0
<26 26 – 30 31 – 35 36 – 40 41 – 45 46 – 50 51 – 55 56 – 60 >60

Age of Perpetrator

perpetrator’s tenure

Tenure may have an effect on occupational fraud rates and losses because individuals who work for an organization for
a longer period of time tend to engender more trust from their co-workers and superiors. They also may acquire higher
levels of authority, and they tend to develop a better understanding of the organization’s internal practices and proce-
dures, which can help them design frauds that will evade internal controls.

The distribution of fraudsters based on their tenure in this study was very similar to what we found in 2008. More than
40% of perpetrators had between one and five years of experience at the victim organization when they committed the
fraud, while a very small percentage had been with the victim organization for less than a year. About half of all fraudsters
had been with the victim for more than five years (see page 58).

As would be expected, losses tended to rise as the perpetrators’ tenure increased. Employees who had more than five
years of tenure with the victim organization caused median losses of more than $200,000. Those who had been with the
victim for five years or less caused much lower losses.

2010 RepoRt to the NAtioNs ON OccuPATIONAl FRAUD ANd AbuSE | 57