Page 407 - ACFE Fraud Reports 2009_2020

Contents

Executive Summary ....................................4 Perpetrator’s Gender Based on Region...................................... 49
Summary of Findings ............................................................. 4 Median Losses Based on Gender .............................................. 50
Conclusions and Recommendations ....................................... 5 Position of Perpetrator Based on Gender .................................. 50
Perpetrator’s Tenure ............................................................. 52
Introduction ...............................................6 Perpetrator’s Education Level ................................................ 54

Perpetrator’s Department ...................................................... 55
The Cost of Occupational Fraud.................8
Schemes Based on Perpetrator’s Department ............................ 57
Distribution of Losses............................................................. 9
Perpetrator’s Criminal and Employment History .................. 58
How Occupational Fraud is Committed ...10 Perpetrator’s Criminal Background .......................................... 58
Perpetrator’s Employment History ........................................... 58
Asset Misappropriation Sub-Schemes ................................... 13
Behavioral Red Flags Displayed by Perpetrators .................... 59
Corruption Cases by Region ................................................ 14
Behavioral Red Flags Based on Perpetrator’s Position ............... 60
Overlap of Fraud Schemes .................................................... 15
Behavioral Red Flags Based on Scheme Type ............................ 61
Duration of Fraud Schemes .................................................. 16
Behavioral Red Flags Based on Gender .................................... 62
Detection of Fraud Schemes .....................18 Non-Fraud-Related Misconduct ........................................... 63
Initial Detection of Occupational Frauds ............................. 19 Human-Resources-Related Red Flags ................................... 63
Median Loss and Median Duration by Detection Method ... 20 Case Results .............................................64
Source of Tips ...................................................................... 21
Criminal Prosecutions .......................................................... 64
Impact of Hotlines ............................................................... 22
Civil Suits............................................................................. 66
Initial Detection of Frauds in Small Businesses ..................... 23
Recovery of Losses ................................................................ 67
Detection Method by Region ............................................... 23
Methodology ............................................68
Victim Organizations ...............................24 Analysis Methodology .......................................................... 68
Type of Organization ........................................................... 24 Who Provided the Data? ...................................................... 69
Size of Organization ............................................................. 25
Methods of Fraud in Small Businesses ...................................... 26 Primary Occupation ................................................................ 69
Experience ............................................................................... 70
Industry of Organization ...................................................... 27
Schemes by Industry ................................................................ 29 Nature of Fraud Examinations Conducted ............................... 70
Corruption Cases by Industry .................................................. 30 Glossary of Terminology ..........................71
Anti-Fraud Controls at the Victim Organization .................. 31
Anti-Fraud Controls at Small Businesses .................................. 32 Appendix ..................................................72
Anti-Fraud Controls by Region ............................................... 33
Effectiveness of Controls .......................................................... 38 Index of Figures ........................................74
Control Weaknesses That Contributed to Fraud ...................... 39
Fraud Prevention Checklist ......................76
Perpetrators ..............................................40
Perpetrator’s Position ............................................................ 40 About the ACFE .......................................78
Position of Perpetrator Based on Region .................................. 42 Membership ......................................................................... 79
The Impact of Collusion ....................................................... 46 Certified Fraud Examiners .................................................... 79
Methods of Fraud Based on Number of Perpetrators ............... 47
Perpetrator’s Age .................................................................. 48
Perpetrator’s Gender ............................................................. 49

REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSE 3