7 Facts You Need to Know About Occupational Fraud
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Posted by  in Fraud Awareness

International Fraud Awareness Week continues.  Today we look at 7 facts to put occupational fraud into perspective.

  1. According to the Association of Certified Fraud Examiners’ (ACFE) 2012 Report to the Nations on Occupational Fraud & Abuse, organizations lose an estimated five percent of their annual revenues to fraud.
  2. Applied to the estimated 2011 Gross World Product, this figure translates to a potential global fraud loss of more than $3.5 trillion.
  3. The median loss caused by the occupational fraud cases in ACFE’s study was $140,000.
  4. More than one-fifth of the frauds involved losses of at least $1 million.
  5. The frauds lasted a median of 18 months before being detected.
  6. More than 80% of the frauds in ACFE’s study were committed by individuals in one of six departments:  accounting, operations, sales, executive/upper management, customer service and purchasing.
  7. More than 85% of fraudsters in ACFE’s study had never been previously charged or convicted of a fraud-related offense.

The ACFE offers a short and effective presentation that provides simple steps any organization can take immediately to help prevent and detect fraud.  Click here for more information.

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