ACFE Estimates U.S. Organizations Lose 7 Percent of Revenues to Fraud
AUSTIN – U.S. organizations lose an estimated seven percent of their annual revenues to fraud, according to a survey of Certified Fraud Examiners who investigated cases between January 2006 and February 2008. The Association of Certified Fraud Examiners (ACFE) published the results of the survey in its highly-anticipated 2008 Report to the Nation on Occupational Fraud & Abuse.
Whistleblower Security is helping to promote awareness of the new research, as it indicates that fraud continues to be a serious problem for businesses and organizations worldwide. “We are proud to be in a business that promotes integrity and ethics within the workplace. We believe that our services support business and support employees,” said Shannon Walker, President of Whistleblower.
The Report also found that:
- Fraud schemes tend to be extremely costly. The median loss caused by the occupational frauds in this study was $175,000. More than one-quarter of frauds involved losses of at least $1 million.
- Schemes frequently continue for years before they are detected. The typical fraud in our study lasted two years from the time it began until the time it was caught by the victim organization.
- Frauds were most often committed by the accounting department or upper management, and most fraudsters were first-time offenders. Only seven percent of fraud perpetrators in the study had prior convictions and only 12 percent had been previously terminated by an employer for fraud-related conduct.
- Occupational frauds are much more likely to be detected by a tip than by audits, controls or other means.
- Small businesses are especially vulnerable to occupational fraud.
- Seventy-eight percent of victim organizations modified their anti-fraud controls after discovering that they had been defrauded.
The Report also details findings such as how organizations were impacted based upon industry, how the implementation of anti-fraud controls affected exposure to fraud, and the most common behavioral traits observed among fraud perpetrators.
The Report to the Nation is available for download online at the ACFE’s web site: www.ACFE.com/RTTN. The Report is in PDF format.
About Whistleblower Security Inc.
Whistleblower Security provides customizable reporting solutions for organizations worldwide. Founded in 2005, Whistleblower is Canada’s leading provider of proprietary technology solutions to assist organizations with their risk mitigation and compliance requirements. For more information, visit www.whistleblowersecurity.com. Making Good Companies Better.
About the Association of Certified Fraud Examiners
The ACFE is the world's premier provider of anti-fraud training and education. Together with nearly 50,000 members in over than 125 countries, the ACFE is reducing the incidence of fraud and providing the training and resources to fight fraud more effectively. Founded in 1988 by Joseph T. Wells, CFE, CPA, the ACFE proudly celebrates its 20th anniversary as the leader in the global fight against fraud. For more information about the ACFE, visit www.ACFE.com.
| Posted by WBS on Jun 20, 2009 | ||
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