Page 677 - ACFE Fraud Reports 2009_2020

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Hotline and Reporting
Mechanism E ectiveness
Hotline Effectiveness

Maintaining a hotline or reporting mechanism
speeds up fraud detection and reduces losses.
Fraud awareness training further improves cultivation
of tips through reporting mechanisms.

MEDIAN LOSSES WERE NEARLY
Organizations with hotlines
AT ORGANIZATIONS detect frauds MORE QUICKLY
% doubled WITHOUT HOTLINES than those without hotlines

64 OF
victim organizations $198,000 with HOTLINES 12 months
had hotlines $100,000 without
with hotlines hotlines without HOTLINES 18 months

MEDIAN DURATION

E ect of EMPLOYEE FRAUD AWARENESS TRAINING
on hotlines and reporting

Training increases the Tips are more likely to be
likelihood of detection by tip submitted through reporting
mechanisms with training

48% of cases detected tips with 56%
by tip with training
training

36% of cases detected by tips without 37%
training
tip without training

Organizations with Small organizations are especially Since 2010, the use of hotlines
hotlines detected fraud likely to detect occupational fraud by tip or reporting mechanisms
has increased
by tip more often notably 49%

<100 47 %
EMPLOYEES
49% cases 41%
OF CASES 31% detected
DETECTED by tip
BY TIP OF CASES
DETECTED
BY TIP 100+ 31 %
EMPLOYEES
HOTLINES NO HOTLINES
2010 2012 2014 2016 2018 2020

Detection Report to the Nations 21