Page 626 - ACFE Fraud Reports 2009_2020

Reasons for Not FIG. 46 Why do organizations decide not to refer cases to law enforcement?
Referring Cases to Fear of bad publicity
Law Enforcement
38%
We know that the rate
of victim organizations Internal discipline su cient
reporting occupational 33%
fraud to law enforce-
ment has decreased in Too costly
recent years (see Figure 24%
43 on pg. 49). There Private settlement
are many reasons why 21%
organizations might
decline to refer cases Lack of evidence
for prosecution. In our 12%
study, the top cause
cited was fear of bad Other
publicity (38%), followed 12%
by internal discipline be- Civil suit
ing sufficient (33%) and
costliness (24%). 4%
Perpetrator disappeared
2%

WHEN VICTIM ORGANIZATIONS ARE FINED

In addition to the direct cost of the fraud, some organizations receive monetary fines from
authorities for having inadequate controls or allowing the fraud to occur.

the median fine was � � � � �
20%
$100,000 � � � � � $1,000,000+ Financial statement fraud schemes
OF FINES
14% �
were the most likely to result in a fine
31%
to the victim organization
� � � � � $10,000–$99,999 � � � � $100,000–$999,999 17% 11% misappropriation
OF FINES
34%
8%
OF FINES
Asset
Financial
Corruption
OF FINES
statement fraud
<$10,000
50 Case Results Report to the Nations