Page 664 - ACFE Fraud Reports 2009_2020

The Global Cost of Fraud

The cases in our study occurred in 125 coun- The Global Cost of Fraud
tries throughout the world, which also helps
underscore the global nature of the threat Fraud is a global problem a ecting all organizations
posed by occupational fraud. Figure 1 on page worldwide. Because occupational fraud is frequently
7 shows the number and percentage of cases undetected and often never reported, it is di cult to
determine the full scope of global losses. But our data
from eight major geographical regions. (Be- provides insight into the enormity of this issue.
cause data in our study was gathered through
a survey of CFEs, the number of cases in each
region largely reflects the geographical make-
up of ACFE membership. It should not be read
to indicate that fraud is more or less prevalent
in any particular region.)
2,504 cases
We present this report with the hope that it will
be of use to anti-fraud practitioners, organiza-
tional leaders, academic researchers, and the from
public at large. We have compiled a great deal
of data about the methods, costs, and indica-
tors of occupational fraud, along with valuable 125 countries
information on how these crimes are detected
and how they might be prevented or mitigat-
ed. The amount of money lost to occupational
fraud each year represents a staggering drain
on the global economy. It directly impacts
organizations’ abilities to create jobs, pro- Causing total
duce goods and services, and provide public losses of more than
services. The better we can understand how
and why these crimes occur and how to fight $3.6 Billion
them, the better we will be at directing the
proceeds of commerce and state action to-
ward the goals for which they were intended,
rather than into the pockets of the fraudsters
who prey on the system. We hope this study AVERAGE LOSS
will contribute to the public understanding PER CASE:
of these crimes; advance the common body
of anti-fraud knowledge; and contribute to
improved detection, deterrence, and investiga-
tion of occupational fraud. $1,509,000

8 Introduction Report to the Nations