Page 591 - ACFE Fraud Reports 2009_2020

We also examined the duration FIG. 8 How long do different occupational fraud schemes last?
of the cases reported to us Payroll
based on the type of scheme 30 months
involved. Figure 8 shows the
result of this analysis. The Check and payment tampering
payroll schemes in our study 24 months
tended to last the longest,
with a median duration of 30 Financial statement fraud 24 months
months, while schemes involv-
ing cash on hand and register Expense reimbursements
disbursements were both 24 months
typically uncovered one year
after they began. Billing
24 months

Cash larceny
24 months
Corruption
22 months

Skimming
18 months

Noncash
18 months
Cash on hand
12 months
Register disbursements
12 months

How to Conceal:
what to Conceal:
3
CONCEALING FRAUD ONLY % Create, Alter, or Destroy? physical or electronic evidence?
�
�
�
�
80%
An act of fraud typically involves not only the commission of the scheme itself, but also e orts OF CASES �� � � � �
80%
to conceal the misdeeds. Understanding the methods fraudsters use to cover their crimes can
help organizations better design prevention mechanisms and detect the warning signs of fraud. DID NOT Created fraudulent Altered existing
evidence
evidence
involve
any attempts 21% 63% 12%
TOP 8 CONCEALMENT METHODS USED BY FRAUDSTERS to conceal Manager-level
the fraud
43%
likely to alter evidence.
All of these � � � � � fraudsters are more
unconcealed Deleted or Owners/executives are ELECTRONIC PHYSICAL
55% 48% 42% 34% 31% 30% 29% 27% cases were destroyed evidence more likely to create EVIDENCE BOTH EVIDENCE
or delete evidence.
committed
Created fraudulent Altered physical Created fraudulent Altered transactions Altered electronic Destroyed physical Created fraudulent Created fraudulent by owners/
physical documents documents transactions in the in the accounting documents or files documents electronic journal entries executives
accounting system system documents or files
How Occupational Fraud Is Committed Report to the Nations 15