Page 610 - ACFE Fraud Reports 2009_2020

One reason frauds committed by high-level perpe-
trators are more costly could be that their schemes FIG. 25 How does the perpetrator’s level of
tend to last longer. The median duration of a scheme authority relate to scheme duration?
committed by an owner/executive was 24 months, Position Median months to detection
compared to 18 months for schemes committed by Employee 12 months
managers and 12 months for those committed by
employees (See Figure 7 on pg. 14 for more informa- Manager 18 months
tion on the correlation between fraud duration and Owner/executive 24 months
median loss.).

Perpetrator’s Tenure

As Figure 26 shows, fraud losses tend to increase loss of USD 40,000, while those with more than
based on how long the fraud perpetrator worked ten years’ experience at the victim organization
for the victim organization. Perpetrators with caused a median loss of USD 241,000, more than
less than one year of tenure caused a median six times as high.

Owners/executives

FRAUD COMMITTED BY OWNERS AND EXECUTIVES engaged in non-fraud-related
Owners/executives misconduct more often
are more likely to collude
Occupational frauds committed by owners/executives tend to be extremely
costly. How do these cases di er from non-owner/executive frauds? with others owners/executives 62%

of cases involved non-
+
Collusion schemes tend to be more fraud-related misconduct
65% of cases involved non-
MEDIAN LOSS costly than single-perpetrator frauds non-owners/executives 41%

6241
of owner/executive fraud-related misconduct
$850,000 frauds involved � � � � � bullying or intimidation

OWNERS/EXECUTIVES corruption was most common, observed in
41% of owner/executive cases
27%

of owner/executive 66% Frauds detected by a third-party
frauds involved financial owners/executives
statement fraud of cases involved auditor or law enforcement:
collusion
+
34% 6% non-owners/executives 45% Owner/executive Non-owner/executive
Non-ownerS/executives Non-ownerS/executives 1 in 8 1 in 25
$100,000 of cases involved
6645
NON‚OWNERS/ collusion
EXECUTIVES
Corruption and financial statement fraud are the
two costliest forms of occupational fraud Frauds that are not detected internally tend to be much more costly

34 Perpetrators Report to the Nations