Page 659 - ACFE Fraud Reports 2009_2020

CONTENTS

Foreword 2 Collusion by Multiple Perpetrators 48

Perpetrator’s Criminal Background 48
Key Findings 4
Perpetrator’s Employment History 49
Introduction 6 Behavioral Red Flags Displayed by Perpetrators 49
Spotlight: The Global Cost of Fraud 8 Non-Fraud-Related Misconduct by Perpetrators 51

How Is Occupational Fraud Committed? 10 Human Resources-Related Red Flags 51
Spotlight: Behavioral Red Flags of Fraud 52
Categories of Occupational Fraud 10
Duration of Fraud Schemes 14 Case Results 54

Velocity of Fraud Schemes 16 Internal Action Taken Against Perpetrator 54
Spotlight: How Occupational Fraud Is Concealed 17 Spotlight: Response to Fraud 55

Detection 18 Reasons for Not Referring Cases to Law Enforcement 56
Recovering Fraud Losses 56
Initial Detection of Occupational Fraud 18
Fines Against Victim Organizations 57
Median Loss and Duration by Detection Method 20
Spotlight: Hotline and Reporting Mechanism Effectiveness 21 Methodology 58
Reporting Mechanisms 22 Analysis Methodology 59

Parties to Whom Whistleblowers Report 23 Survey Participants 60

Victim Organizations 24 Regional Focus 62
Type of Organization 24 Asia-Pacific 62

Size of Organization 25 Eastern Europe and Western/Central Asia 64
Industry of Organization 26 Latin America and the Caribbean 66
Spotlight: Fraud in Nonprofits 28 Middle East and North Africa 68
Anti-Fraud Controls at Victim Organizations 31 Southern Asia 70

Spotlight: Internal Control Weaknesses that Sub-Saharan Africa 72
Contribute to Occupational Fraud 36
United States and Canada 74
Perpetrators 38 Western Europe 76
Perpetrator’s Position 38
Statistical Appendix 78
Perpetrator’s Tenure 39

Perpetrator’s Department 40 Index of Figures 82
Perpetrator’s Gender 43 Fraud Prevention Checklist 84
Perpetrator’s Age 45
Glossary of Terminology 86
Perpetrator’s Education Level 46
Spotlight: Profile of a Fraudster 47 About the ACFE 87

Contents Report to the Nations 3