Page 457 - ACFE Fraud Reports 2009_2020

A fraudster’s tenure with his or her employer tends to have a strong correlation with the size of the fraud.
Figure 64 shows a steady increase in median loss as the perpetrator’s tenure increases. There are several reasons
why tenure might affect fraud losses. Individuals who have worked for an organization for a long time might
engender trust from their coworkers or supervisors, which can mean their work is not reviewed as closely as it
should be. Long-term employees might also be more familiar with an organization’s anti-fraud controls — and
the gaps in those controls. And, of course, long-tenured employees might rise to higher levels of authority
within their companies.

Figure 64: Tenure of Perpetrator — Median Loss

$350,000
$289,000
$300,000
$231,000
$250,000 $229,000 $220,000
$200,000 $200,000
$200,000
MEDIAN LOSS $150,000 $114,000

$100,000 $100,000 $100,000
$47,000 $51,000
$50,000 $25,000 2014
6.6% 2012
$0 2010
Less than 1 year 1-5 years 6-10 years More than 10 years
TENURE OF PERPETRATOR

RepoRt to the NatioNs oN occupatioNal FRaud aNd abuse 53