Page 512 - ACFE Fraud Reports 2009_2020

Detection of Fraud Schemes

Formal Reporting Mechanism Used by Whistleblower
Our research has consistently established tips as a major source for detecting fraud, and the presence of hotlines can have
a substantial impact on reporting (see Figure 34 on page 27). To understand how tips are received, we asked respondents to
specify the formal reporting mechanism(s) used by the whistleblower. Figure 35 shows that while telephone hotlines are the
most common (39.5% of tips received), more than half of complaints were submitted via the Internet (i.e., email and Web-
based or online forms combined). The data suggests that organizations might benefit from offering multiple channels for
reporting fraud.

Figure 35: Formal Reporting Mechanism Used by Whistleblower

FORMAL REPORTING MECHANISM USED
Telephone Hotline 39.5%

Email 34.1%

Web-Based/Online Form 23.5%

Mailed Letter/Form 16.7%

Other 9.8%

Fax 1.5%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
PERCENT OF TIPS

More than half of whistleblowers WHISTLEBLOWERS REPORT
used internet-based reporting
FRAUD THROUGH A NUMBER OF
DIFFERENT CHANNELS, SUCH
AS TO A DIRECT SUPERVISOR,

COMPANY EXECUTIVE, OR A

FRAUD INVESTIGATION TEAM.

28 REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSE