Page 669 - ACFE Fraud Reports 2009_2020

Asset Misappropriation Sub-Schemes
Within the broad category of asset misappropriation, fraudsters use several methods to steal funds and other
resources from their employers. Figure 5 is a heat map that shows the frequency and median loss of each category
of asset misappropriation sub-scheme (see Glossary on page 86 for definitions of each of these sub-scheme cate-
gories). Billing schemes are the most common form of asset misappropriation and also cause a high median loss,
making this type of fraud a particularly significant risk. Other high-risk frauds based on the combination of frequen-
cy and impact are check and payment tampering, as well as schemes involving the theft of noncash assets.

FIG. 5 What asset misappropriation schemes present the greatest risk?

$120,000
Check and payment tampering
$110,000

$100,000 Billing

$90,000
Cash larceny
$80,000 Noncash

$70,000
Payroll
$60,000

$50,000 Skimming

$40,000
Expense reimbursements
$30,000 Cash on hand
Register disbursements
$20,000

$0
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

LESS RISK MORE RISK

Category Number of Cases Percent of All Cases Median Loss
Billing 430 20% $100,000
Noncash 395 18% $78,000
Expense reimbursements 310 14% $33,000
Skimming 230 11% $47,000
Cash on hand 224 10% $26,000
Check and payment tampering 206 10% $110,000
Payroll 199 9% $62,000
Cash larceny 169 8% $83,000
Register disbursements 55 3% $20,000

R
eport to the Nations
How Is Occupational Fraud Committed?
How Is Occupational Fraud Committed? Report to the Nations 13