Cost of Fraud: Is Your Company at Risk?
According to the 2014 Report to the Nations on Occupational Fraud & Abuse, the typical organization loses 5 percent of its revenues to fraud each year. At its extreme, fraud can destroy entire companies — Enron, Arthur Anderson and WorldCom are just a few examples, making the identification and management of fraud risks crucial components of your organization’s business plan.
Research conducted by the Association of Certified Fraud Examiners in preparing the 2014 Report to the Nations determined that:
More than 22 percent of the cases in the survey resulted in losses of at least $1 million.
The median loss amounted to $145,000 and the frauds lasted a median of 18 months before being detected.
The smallest organizations tend to suffer disproportionately large losses.
No Organization is Immune to Fraud
Is your company at risk? Do you know how to spot the red flags associated with fraud? Where are the weaknesses in your internal controls? Get three free modules of the ACFE's Fraud Risk Assessment Tool and learn how vulnerable your business is to fraud.
“Today, fraud is something that must be considered as a risk to any business or activity. But, it is a risk that we can put our arms around and deal with, from mitigation, detection to response, and the ACFE brings many solutions to fraud issues.”
— Tania Fabiani, CFE