Page 593 - ACFE Fraud Reports 2009_2020

Tip Sources

Since tips are the most common detection method, but this data suggests organizations should also
it is important to understand where those tips come consider promoting reporting mechanisms to outside
from. Figure 10 shows that slightly more than half parties, especially customers and vendors. Addition-
of all tips (53%) were provided by employees of the ally, 14% of tips came from an anonymous source,
victim organizations. Meanwhile, nearly one-third demonstrating that a significant portion of those who
(32%) of the tips that led to fraud detection came reported fraud did not want their identities known.
from people outside the organization: customers, Whistleblowers often have a fear of being identified
vendors, and competitors. Active cultivation of tips or retaliated against, which is why it is important that
and complaints, such as the promotion of fraud they be able to make reports anonymously where
hotlines, is often geared primarily toward employees, such practice is legally permissible.

FIG. 9 How is occupational fraud initially detected? FIG. 10 Who reports occupational fraud?

Tip
40%
Internal audit
15%
Management review
13%

By accident Employee
53%
7%

Other
6%

Account reconciliation Customer
5% 21%
Document examination
4%

External audit Anonymous
4% 14%
Surveillance/monitoring
3%
Vendor
8%
Notified by law enforcement
2%
Other
IT controls 5%
1%
Competitor
Confession 3%
1%
Shareholder/owner
2%

Internal source External source Other

Detection Report to the Nations 17