Page 304 - ACFE Fraud Reports 2009_2020

perpetrators

perpetrator’s Department
The table below left shows how frauds were distributed across various departments within the victim organizations. Inter-
estingly, 80% of all frauds in this study were committed by employees in six departments: accounting, operations, sales,
executive/upper management, customer service and purchasing. In our 2008 study, these six departments accounted for
83% of all cases. Additionally, the frauds in these six departments also accounted for 95% of all losses in our 2010 study,
and 99% in 2008.

The table below right presents the same data on frauds by department, but is sorted based on median losses. Among
the six highest-frequency departments we see that upper management ($829,000) and purchasing ($500,000) caused
the highest median losses. Frauds committed in the sales ($95,000) and customer service ($46,000) departments tended
to result in much lower losses.

Number of cases based Median loss based
on Perpetrator’s department on Perpetrator’s department
Number Median Number Median
Department percentage Department percentage
of Cases Loss of Cases Loss
Accounting 367 22.0% $180,000 Executive/Upper 224 13.5% $829,000
Management
Operations 299 18.0% $105,000
Board of Directors 24 1.4% $800,000
Sales 225 13.5% $95,000
Legal 8 0.5% $566,000
Executive/Upper 224 13.5% $829,000
Management Purchasing 103 6.2% $500,000
Customer Service 120 7.2% $46,000 Finance 70 4.2% $450,000
Purchasing 103 6.2% $500,000 Marketing/Public 34 2.0% $248,000
Relations
Warehousing/Inventory 78 4.7% $239,000
Warehousing/Inventory 78 4.7% $239,000
Finance 70 4.2% $450,000
Human Resources 22 1.3% $200,000
Information Technology 47 2.8% $71,400
Accounting 367 22.0% $180,000
Marketing/Public 34 2.0% $248,000
Relations Manufacturing and 28 1.7% $150,000
Production
Manufacturing and 28 1.7% $150,000
Production Operations 299 18.0% $105,000
Board of Directors 24 1.4% $800,000 Research and 13 0.8% $100,000
Development
Human Resources 22 1.3% $200,000
Sales 225 13.5% $95,000
Research and 13 0.8% $100,000
Development Information Technology 47 2.8% $71,400
Legal 8 0.5% $566,000 Customer Service 120 7.2% $46,000
Internal Audit 3 0.2% $13,000 Internal Audit 3 0.2% $13,000

60 | 2010 RepoRt to the NAtioNs ON OccuPATIONAl FRAUD ANd AbuSE