Page 588 - ACFE Fraud Reports 2009_2020

When assessing an FIG. 5 How often do fraudsters commit more than one type of occupational
organization’s fraud risks fraud?
and designing anti-fraud
controls, it is important to
remember that fraudsters
Financial
typically seize whatever statement fraud
opportunity arises when
committing their schemes.
Thus, many frauds— Asset
including nearly one-third misappropriation
of the cases in our study, Corruption
as illustrated in Figure
5—involve more than one
form of occupational fraud.

Asset Misappropriation
Sub-Schemes

Within the category of Asset misappropriation only 57%
asset misappropriation, Asset misappropriation and corruption 23%
our research shows that
there are several dis- Corruption only 9%
tinct sub-categories of
schemes. The heat map Corruption, asset misappropriation, and financial statement fraud 4%
in Figure 6 illustrates the Asset misappropriation and financial statement fraud 3%
relative frequency and cost
of each of these scheme Financial statement fraud only 1%
types. The schemes falling
in the darkest area of the Corruption and financial statement fraud 1%
heat map—check and pay-
7
ment tampering, billing,
and theft of noncash as- FIG. 6 What asset misappropriation schemes present the greatest risk?
sets—rank among the most
common and the costliest Check and payment tampering
$150,000 (12%)
scheme types and thus
typically pose the greatest
Billing
risk to organizations. $100,000 (20%)
Noncash
$98,000 (21%)
7 In previous reports, this category
was referred to simply as check
tampering. However, to better Cash larceny
reflect the increasing shift toward $75,000 (11%)
Payroll
electronic payment methods, we $63,000 (7%)
have changed the category title to Skimming
check and payment tampering. $50,000 (11%)
Expense reimbursements
Register disbursements $31,000 (14%)
$29,000 (3%) Cash on hand
$20,000 (15%)

LESS RISK MORE RISK

12 How Occupational Fraud Is Committed Report to the Nations