Page 667 - ACFE Fraud Reports 2009_2020

FIG. 3 Occupational Fraud and Abuse Classification System (the Fraud Tree) 3

Corruption Asset Misappropriation Financial Statement Fraud

Net Worth/ Net Worth/
Conflicts of Illegal Gratuities Economic Net Income Net Income
Interest Bribery Extortion Overstatements Understatements

Purchasing Invoice Timing Timing
Schemes Kickbacks Dierences Dierences

Sales Bid Rigging Fictitious Understated
Schemes Revenues Revenues
Concealed Overstated
Liabilities and Liabilities and
Expenses Expenses
Improper Improper
Asset Asset
Valuations Valuations
Improper Improper
Disclosures Disclosures

Cash Inventory and All
Other Assets

Theft of Cash Theft of Cash Fraudulent Misuse Larceny
on Hand Receipts Disbursements
Asset
Requisitions
Expense
Payroll
Billing
Register
Skimming Cash Larceny Schemes Schemes Reimbursement Check and Disbursements and Transfers
Payment
Schemes
Tampering
False Sales
and Shipping
Shell Ghost Mischaracterized Forged Maker False Voids
Refunds
Sales Receivables and Other Company Employee Expenses Purchasing
Non- Falsified Overstated Forged and Receiving
Unrecorded Write-O Accomplice Wages Expenses Endorsement False Refunds Unconcealed
Vendor
Schemes
Larceny
Personal Commission Fictitious Altered Payee
Lapping
Understated Schemes Purchases Schemes Expenses
Multiple Authorized
Unconcealed Reimbursements Maker
3 The definitions for many of the categories of fraud schemes in the Fraud Tree are found in the Glossary of Terminology on pg. 86.

Report to the Nations How Is Occupational Fraud Committed?
How Is Occupational Fraud Committed? Report to the Nations 11