Page 579 - ACFE Fraud Reports 2009_2020

CONTENTS

Key Findings 4 Collusion by Multiple Perpetrators 42
Perpetrator’s Criminal Background 42
Introduction 6
Perpetrator’s Employment History 43
The Cost of Occupational Fraud 8 Behavioral Red Flags Displayed by Perpetrators 43

Projecting Total Fraud Losses Based on Imperfect Data 8 Spotlight: The Red Flags of Fraud 44
The Fraud Costs We Know 8 Non-Fraud-Related Misconduct by Perpetrators 46

How Occupational Fraud Is Committed 10 Human Resources-Related Red Flags 46
Categories of Occupational Fraud 10 Case Results 47

Spotlight: Corruption 13 Internal Action Taken Against Perpetrator 47
Duration of Fraud Schemes 14 Criminal Prosecutions and Civil Suits 48
Spotlight: Concealing Fraud 14 Spotlight: When Victim Organizations are Fined 50

Detection 16 Spotlight: Recovering Fraud Losses 51

Initial Detection of Occupational Frauds 16 Methodology 52
Tip Sources 17 Analysis Methodology 52
Median Loss and Duration by Detection Method 18 Survey Participants 54

Spotlight: Hotlines and Reporting Mechanisms 19
Regional Focus 56
Victim Organizations 20 Asia-Pacific 56
Type of Organization 20 Canada 58
Size of Organization 21 Eastern Europe and Western/Central Asia 60

Spotlight: Fraud in Small Businesses 22 Latin America and the Caribbean 62
Industry of Organization 24 Middle East and North Africa 64
Anti-Fraud Controls at the Victim Organization 26 Southern Asia 66

Perpetrators 33 Sub-Saharan Africa 68

Perpetrator’s Position 33 United States 70
Perpetrator’s Tenure 34 Western Europe 72

Spotlight: Fraud Committed by Owners and Executives 34 Index of Figures 74
Perpetrator’s Department 36
Fraud Prevention Checklist 76
Perpetrator’s Gender 39
Perpetrator’s Age 41 Glossary of Terminology 78

Perpetrator’s Education Level 41
About the ACFE 79

Contents Report to the Nations 3