Page 688 - ACFE Fraud Reports 2009_2020

Effectiveness of Anti-Fraud Controls
While implementing controls to prevent and detect with a 50% or greater reduction in both fraud losses
fraud is a necessary part of managing fraud risk, not and duration: a code of conduct; an internal audit
all anti-fraud controls are created equally. To help department; management’s certification of financial
organizations understand the potential impact of statements; and regular management review of in-
various controls, we compared the median losses and ternal controls, processes, accounts, or transactions.
median durations of the frauds in our study based Internal audits and management reviews are both
on whether each specific control was present at the mechanisms that can be used to actively look for
victim organization during the fraud’s occurrence. fraud, so their correlation with reduced fraud losses
and duration stands to reason. In contrast, codes of
For every control we examined, organizations that had conduct and management certifications of financial
the control in place experienced smaller fraud losses statements are less directly tied to fraud detection,
and detected frauds more quickly than organizations but both mechanisms likely help increase the percep-
lacking that control. As seen in Figures 22 and 23, tion of detection and form the foundation for a holistic
four anti-fraud controls in particular were associated anti-fraud culture.

How has the use of anti-fraud controls

changed over the last decade? 2010 2020 Increase

HOTLINE 51% 64% 13%
Over the last ten years of our studies, four of the
controls we’ve analyzed have seen a consis-
tent and notable increase in implementation
rates. These controls are among those ANTI-FRAUD 43% 56% 13%
most commonly associated with a robust POLICY
anti-fraud program, which indicates that
increasing numbers of organizations FRAUD
are taking the threat of fraud seri- TRAINING FOR 44% 55% 11%
ously and implementing measures EMPLOYEES
specifically designed to help them
mitigate these risks.
FRAUD TRAINING
FOR MANAGERS/ 46% 55% 9%
EXECUTIVES

32 Victim Organizations Report to the Nations