Page 670 - ACFE Fraud Reports 2009_2020

Duration of Fraud Schemes
MEDIAN DURATION
Not all fraud can be prevented. Even in the most secure organizations, it is likely that OF A FRAUD SCHEME
some type of employee fraud will eventually occur. Consequently, quick detection of
fraud is vital to protecting an organization from potential damage. Our research indi-
cates that the median duration of a fraud—that is, the typical time between when a fraud 14
begins and when it is detected—is 14 months. Additionally, as Figure 6 indicates, the
longer a fraud remains undetected, the greater the financial losses. MONTHS

FIG. 6 How does the duration of a fraud relate to median loss?

29%

19%

PERCENT OF C A SES 10% 13% 12% 5% 5% 7%

19–24
7–12
13–18
49–60
≤6 months months months months 25–36 37–48 months >60 months
months
months
$50,000
$90,000
$135,000
$210,000
MEDIAN L OSS $300,000 $430,000 $340,000

$740,000

14 How Is Occupational Fraud Committed? Report to the Nations