Together, Reducing Fraud Worldwide
Cost of Fraud: Is Your Company at Risk?
According to the ACFE's Report to the Nations on Occupational Fraud & Abuse, the typical organization loses 5% of its revenues to fraud each year. Applied to the estimated 2011 Gross World Product, this figure translates to a potential projected global fraud loss of more than $3.5 trillion. Other key findings include:
The median loss caused by the occupational fraud cases in our study was $140,000. More than one-fifth of these cases caused losses of at least $1 million.
The frauds reported to us lasted a median of 18 months before being detected.
In 81% of cases, the fraudster displayed one or more behavioral red flags that are often associated with fraudulent conduct. Living beyond means (36% of cases), financial difficulties (27%), unusually close association with vendors or customers (19%) and excessive control issues (18%) were the most commonly observed behavioral warning signs.
Occupational fraud is more likely to be detected by a tip than by any other method. The majority of tips reporting fraud come from employees of the victim organization.
Learn about how much fraud costs businesses and ultimately, you, and gain insight into the most effective ways to prevent, deter and detect fraud.
How Much is Fraud Costing Your Company?
Does your organization exhibit any of the red flags associated with fraud? Do you know where the weaknesses are in your internal controls? Receive three free modules of the ACFE's Fraud Risk Assessment Tool and learn how vulnerable your business is to fraud.
Learn more about the information and resources available from the Association of Certified Fraud Examiners.
“The ACFE has everything from the most up-to-date information about fraud, waste and abuse across the country to training, teaching and networking opportunities available.”
— Robert C. Cleland, CFE
“The information I receive from the ACFE helps me stay in tune with fraud today and I use the information to provide preventative maintenance for businesses I work with.”
— Alice E. Gold, CFE
© 2014 Association of Certified Fraud Examiners, Inc. All rights reserved.