Page 511 - ACFE Fraud Reports 2009_2020

Detection of Fraud Schemes

Impact of Hotlines
One way to determine the effectiveness of reporting hotlines is to compare the percentage of cases that were initially
detected via tip in organizations with and without hotlines. Figure 34 shows that while tips were the most common
detection method regardless of whether a hotline was in place, schemes were detected by tip in 47.3% of cases at
organizations that had hotlines, but in only 28.2% of cases at organizations without them.

Figure 34: Impact of Hotlines

Tip 28.2% 47.3%
Internal Audit 18.4%
13.4%
Management Review 3.9% 8.1% 12.1% 15.4%
DETECTION METHOD Document Examination 2.0% 3.9% 7.8%
Account Reconciliation
By Accident
3.1%
Other
9.1%
2.7%
5.3%
Surveillance/Monitoring
1.8%
2.0%
IT Controls
1.8%
With Hotlines
External Audit 0.5% 6.1% Organizations
Notified by Law Enforcement 1.8% Organizations
2.6%
Without
Confession 0.9% Hotlines
1.8%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
PERCENT OF CASES

PERCENT OF CASES DETECTED BY TIP
MORE THAN 40% OF ALL TIPS With Hotlines
CAME FROM NON-EMPLOYEES, Without Hotlines

SUCH AS CUSTOMERS AND
VENDORS. 47% 28%

REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSE 27