Page 510 - ACFE Fraud Reports 2009_2020

Detection of Fraud Schemes

Source of Tips
As tips are the most common detection method (see Figure 21 on page 21), it is helpful to know who is likely to report
fraud to the organization. Employees, who provided 51.5% of tips, are generally the focus of reporting mechanisms
at most organizations. However, anti-fraud professionals should remember that more than 40% of all tips came from
non-employees. Customers (17.8%), vendors (9.9%), and other parties were significant sources of tips. Thus, some
organizations might cultivate more tips by promoting fraud reporting mechanisms to multiple audiences.

Additionally, 14% of tips came from anonymous sources. Some jurisdictions restrict organizations from promoting
anonymous reporting mechanisms, but organizations who choose not to have them risk losing sources who are not
comfortable revealing their identity.

Figure 33: Source of Tips

Employee
51.5%
Competitor
1.6% Customer
Shareholder/ 17.8%
Owner
2.7%
Vendor
9.9% Anonymous
14.0%
Other
12.6%

26 REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSE