Page 662 - ACFE Fraud Reports 2009_2020

INTRODUCTION

This study represents the most comprehensive
examination available of the costs, methods,

victims, and perpetrators of occupational fraud.

The Association of Certified Fraud Examiners is
pleased to present the 2020 edition of the Report The goal of the Report to the Nations
to the Nations, our 11th study of the impact occu- is to compile detailed information
pational fraud has on organizations throughout the about occupational fraud cases in
world. Occupational fraud —fraud committed by five critical areas:
1
individuals against the organizations that employ
them—is among the costliest forms of financial crime The methods by which occupational
in existence. There are more than 3.3 billion people fraud is committed
in the global workforce, and nearly all of them have
2
access to or control over some portion of their em- The means by which occupational frauds
ployers’ cash or assets. For the ones who decide to are detected
seek illegal gains, their workplace is, in many cases,
the most logical and convenient target. While the vast The characteristics of the organizations
that are victimized by occupational fraud
majority of those 3.3 billion people will never abuse
the trust placed in them by their employers, the small The characteristics of the people who
percentage who do can cause enormous damage. As commit occupational fraud
this report illustrates, that damage could amount to
trillions of dollars in losses each year. The results of the cases after the frauds
have been detected and the perpetrators
This study contains an analysis of 2,504 cases of identified
occupational fraud that were investigated between
January 2018 and September 2019. This is a tiny
fraction of the number of frauds committed each organizations, and nonprofits throughout the world.
year against millions of businesses, government Yet this study represents the most comprehensive
examination available of the costs, methods, victims,
and perpetrators of occupational fraud. The data
1 Occupational fraud is formally defined as the use of one’s occupation
for personal enrichment through the deliberate misuse or misapplication presented here was gathered through our 2019
of the employing organization’s resources or assets. Global Fraud Survey. Each Certified Fraud Examiner
2 United Nations Department of Economic and Social Affairs, World
Economic Situation and Prospects Monthly Briefing, April 1, 2019. (CFE) who took part in the survey was presented with

6 Introduction Report to the Nations