Page 312 - ACFE Fraud Reports 2009_2020

perpetrators

purchasing Department
The vast majority of frauds in the purchasing department involved corruption (72% of cases), and billing schemes also
occurred at a very high rate (43%). Both of these schemes were more likely to occur in the purchasing department than
in any other area of the organization, which is not surprising because the purchasing function often lends itself to bribery,
overbilling and bid rigging schemes, which are among the most costly forms of occupational fraud.

Schemes committed by Perpetrators in the Purchasing department — 103 cases 28

Corruption 71.8% Purchasing
32.8%
Billing 42.7%
26.0% All Cases
Non-Cash 13.6%
17.5%
Expense Reimbursement 9.7% 15.1%
5.8%
Skimming
Scheme Type Check Tampering 4.9%
14.5%
Cash on Hand
12.0%
4.9%
13.4%
Cash Larceny 2.9%
9.8%
Payroll 1.9%
8.5%
Financial Statement Fraud 0.0%
4.8%
Register Disbursements 0.0%
3.0%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Percent of Cases

28 The sum of percentages in this chart exceeds 100% because several cases involved schemes from more than one category.

68 | 2010 RepoRt to the NAtioNs ON OccuPATIONAl FRAUD ANd AbuSE