Page 420 - ACFE Fraud Reports 2009_2020

Duration of Fraud Schemes
The correlation between how long fraud schemes last and the amount of financial damage they cause might seem
self-evident. However, Figure 9 provides a clear illustration of the importance of early detection. It is encouraging
to note that one-quarter of the frauds in our study were detected in the first six months of their occurrence; for
those cases, the median loss was limited to $50,000. In contrast, the longer frauds were able to go undetected, the
more costly they became.

Figure 9: Frequency and Median Loss Based on Duration of Fraud

$1,200,000 30%

24.9%
$1,000,000 $965,000 25%

$800,000 16.9% 20%
MEDIAN LOSS $600,000 14.5% 13.4% 15% PERCENT OF CASES

$400,000 10.4% $363,000 $436,000 8.8% 10%
6.3%
$211,000 4.9%
$200,000 $150,000 5%
$98,000 $112,000
$50,000
$0 0%
Less than 7-12 13-18 19-24 25-36 37-48 49-60 61+
7 months months months months months months months months
DURATION OF SCHEME Percent of Cases

16 REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSE