Page 580 - ACFE Fraud Reports 2009_2020

KEY FINDINGS

2,690 $7 billion+ of a fraud scheme INTERNAL CONTROL WEAKNESSES Owners/executives
Median duration
WERE RESPONSIBLE FOR NEARLY
HALF OF FRAUDS
accounted for
real cases of IN TOTAL LOSSES a small percentage
occupational fraud of cases Losses caused by men
were 75% larger
from $130,000 than losses caused by women
125 countries MEDIAN LOSS PER CASE 1

median losses
in 22% MONTHS ALL 18 ANTI-FRAUD CONTROLS are far greater
ANALYZED WERE ASSOCIATED
23 industry OF CASES CAUSED Corruption WITH LOWER FRAUD LOSSES 19% $74,000 when fraudsters
$$$$$$$
LOSSES OF
of cases
collude
categories
AND QUICKER DETECTION
$1 million+
2
was the most common scheme
in every global region
but caused a $$$$$$$$$$$$$$
median loss of $150,000
are by far the most common $850,000 3+
Tips initial detection method
�
�
�
�
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Asset Misappropriation schemes $800,000 $339,000
are the most common and least costly median loss �
internal
management
$114,000 tips �
audit
review
40%
�
�
�
DATA MONITORING/ANALYSIS and
median loss 15% 13% SURPRISE AUDITS were correlated with the FRAUDSTERS WHO HAD BEEN
�
�
��
89% � largest reductions in fraud loss and duration
of cases � WITH THEIR COMPANY LONGER
employees Organizations with hotlines � �� � � Data monitoring/ � � � �� STOLE TWICE AS MUCH
52%
58%
analysis
provide over half detect fraud by tips more often
of tips, and nearly MORE THAN 5 YEARS’ TENURE
1/3 come from lower losses faster detection 85%
financial statement outside parties 46% of fraudsters $200,000
54%
fraud schemes OF CASES � � � �� Surprise � � �� � MEDIAN LOSS
51%
audits
are the least common 10% DETECTED 30% displayed at least
OF CASES
and most costly of cases BY TIP DETECTED lower losses faster detection one behavioral LESS THAN 5 YEARS’ TENURE
BY TIP red flag $100,000
Yet only 37% of victim organizations MEDIAN LOSS
implemented these controls of fraud
HOTLINES NO HOTLINES
Over the past 10 years, occupational fraud
SMALL BUSINESSES referrals to prosecution declined 16% Only 4%
LOST ALMOST $200,000
TWICE AS MUCH $104,000 OF PERPETRATORS
PER SCHEME TOP REASON FOR HAD A PRIOR
TO FRAUD MEDIAN LOSS MEDIAN LOSS NONREFERRALS WAS FRAUD CONVICTION
FEAR OF BAD
100+ EMPLOYEES <100 EMPLOYEES PUBLICITY -16% A MAJORITY OF THE VICTIMS RECOVERED NOTHING
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
4 Key Findings Report to the Nations