Page 410 - ACFE Fraud Reports 2009_2020

Introduction

Fraud is ubiquitous; it does not discriminate in its oc-
currence. And while anti-fraud controls can effectively
reduce the likelihood and potential impact of fraud, the
truth is that no entity is immune to this threat. Unfortu-
nately, however, many organizations still suffer from an
“it can’t happen here” mindset. To help combat this mis-
conception, to raise public awareness about the cost and
universal nature of fraud and to support anti-fraud pro-
fessionals around the globe, we have undertaken exten-
sive research into the costs and trends related to fraud.
The results of our initial research efforts were contained
in the inaugural Report to the Nation on Occupational
Fraud and Abuse, which was released in 1996; since then
we have continued and expanded our research, with
subsequent reports released biennially since 2002.

Although the types of fraud that affect organizations vary widely,
the research contained in this Report and its predecessors focuses on
a particularly pervasive form: occupational fraud, which is defined as:

The use of one’s occupation for personal enrichment through the
deliberate misuse or misapplication of the employing organization’s
resources or assets

Put more simply, occupational frauds are those schemes in which
a person defrauds his or her employing organization. By its very
nature, this form of fraud is a threat to all organizations that employ
individuals to perform their business functions.
To explore and illuminate this risk, each of our Reports has been
based on detailed information about specific cases of occupational Fraud is ubiquitous; it does not
fraud that were investigated by Certified Fraud Examiners (CFEs), discriminate in its occurrence. And while
and we undertook all Reports with the same goals: anti-fraud controls can effectively reduce
the likelihood and potential impact of
• To summarize the opinions of experts on the percentage of fraud, the truth is that no entity is
organizational revenue lost to fraud each year immune to this threat.

• To categorize the ways in which occupational fraud and abuse
occur
• To analyze the characteristics of the individuals who commit occupational fraud and abuse

• To examine the characteristics of the organizations that are victimized by occupational fraud and abuse

6 REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSE