Page 587 - ACFE Fraud Reports 2009_2020

FIG. 4 Occupational Fraud and Abuse Classification System (the Fraud Tree) 6

Corruption Asset Misappropriation Financial Statement Fraud

Net Worth/
Net Worth/
Conflicts of Illegal Gratuities Economic Net Income Net Income
Interest Bribery Extortion Overstatements Understatements
Purchasing Invoice Timing Timing
Schemes Kickbacks Dierences Dierences

Sales Bid Rigging Fictitious Understated
Schemes Revenues Revenues
Concealed Overstated
Liabilities and Liabilities and
Expenses Expenses
Improper Improper
Asset Asset
Valuations Valuations
Improper Improper
Disclosures Disclosures

Cash Inventory and All
Other Assets

Theft of Cash Theft of Cash Fraudulent Misuse Larceny
on Hand Receipts Disbursements
Asset
Requisitions
Expense
Check and
Skimming Cash Larceny Billing Payroll Reimbursement Payment Register and Transfers
Schemes Schemes Schemes Tampering Disbursements
False Sales
and Shipping
Shell Ghost Mischaracterized Forged Maker
Refunds Company Employee Expenses False Voids
Sales Receivables
and Other Purchasing
Non- Falsified Overstated Forged and Receiving
Unrecorded Write-O Accomplice Wages Expenses Endorsement False Refunds
Vendor
Schemes Unconcealed
Larceny
Personal Commission Fictitious Altered Payee
Lapping
Understated Schemes Purchases Schemes Expenses
Multiple Authorized
Unconcealed Reimbursements Maker

6 The definitions for many of the categories of fraud schemes in the Fraud Tree are found in the Glossary of Terminology on pg. 78. In previous reports, the category
check and payment tampering was referred to simply as check tampering. However, to better reflect the increasing shift toward electronic payment methods, we
have changed the category title.

Report to the Nations How Occupational Fraud Is Committed
How Occupational Fraud Is Committed Report to the Nations 11