Page 618 - ACFE Fraud Reports 2009_2020

Collusion by Multiple FIG. 35 How does the number of perpetrators in a scheme relate to
Perpetrators occupational fraud?

Approximately half of the cases 52% ONE
of cases
in our study involved multiple � � � � �
perpetrators who colluded with PERPETRATOR
one another to commit fraud. As Median
Figure 35 illustrates, fraud losses $74,000 loss
rose significantly when more
than one fraudster was involved 19%
in a scheme. One likely explana- of cases TWO
tion for this finding is that many � � � � � PERPETRATORS
anti-fraud controls work on the
Median
principles of separation of duties $150,000 loss
and independent checks. When
multiple perpetrators conspire in
a fraud scheme, they can circum- 30% THREE OR MORE
of cases
vent the system of independent � � � � �
verification that might otherwise PERPETRATORS
detect fraud. $339,000 loss
Median

Perpetrator’s
Criminal Background FIG. 36 Do perpetrators tend to have prior fraud convictions?

The vast majority of occupational
fraudsters have no prior history
of criminal fraud convictions.
Only 4% of the perpetrators in
our 2018 study had previously
been convicted of a fraud-related
offense, which is consistent with
our findings in every study dating
back to 1996. This suggests that
most occupational fraudsters are
first-time offenders. However, ac-
cording to Figure 43 on pg. 49,
between 58% and 69% of occu-
pational fraud cases in our past
studies were never referred to
law enforcement, which indicates Never charged or convicted (89%)
that the actual number of repeat Charged but not convicted (6%)
offenders is probably higher than
what can be identified through Had prior convictions (4%)
conviction records. Other (1%)

42 Perpetrators Report to the Nations