About the Report

  • Introduction

    Fraud is ubiquitous; it does not discriminate in its occurrence. And while anti-fraud controls can effectively reduce the likelihood and potential impact of fraud, the truth is that no entity is immune to this threat. Unfortunately, however, many organizations still suffer from an “it can’t happen here” mindset. To help combat this misconception, to raise public awareness about the cost and universal nature of fraud and to support anti-fraud professionals around the globe, we have undertaken extensive research into the costs and trends related to fraud. The results of our initial research efforts were contained in the inaugural Report to the Nation on Occupational Fraud and Abuse, which was released in 1996; since then we have continued and expanded our research, with subsequent reports released biennially since 2002.

    Although the types of fraud that affect organizations vary widely, the research contained in this Report and its predecessors focuses on a particularly pervasive form: occupational fraud, which is defined as:

    The use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets

    Put more simply, occupational frauds are those schemes in which a person defrauds his or her employing organization. By its very nature, this form of fraud is a threat to all organizations that employ individuals to perform their business functions.

    To explore and illuminate this risk, each of our Reports has been based on detailed information about specific cases of occupational fraud that were investigated by Certified Fraud Examiners (CFEs), and we undertook all Reports with the same goals:

    • To summarize the opinions of experts on the percentage of organizational revenue lost to fraud each year
    • To categorize the ways in which occupational fraud and abuse occur
    • To analyze the characteristics of the individuals who commit occupational fraud and abuse
    • To examine the characteristics of the organizations that are victimized by occupational fraud and abuse

    In furtherance of these goals, the 2014 Report contains an analysis of 1,483 cases of occupational fraud that occurred in more than 100 countries.

2014 ACFE Asia-Pacific Fraud Conference