ACFE Report Provides Insights on Occupational Fraud in Canada


Corruption, Billing and Expense Schemes Most Common in Survey


24 June 2010 - AUSTIN, Texas--The median fraud loss for organisations in Canada is about $127,000 (CAD), according to a survey of Certified Fraud Examiners (CFEs) who investigated cases between January 2008 and December 2009. The study found corruption, billing and expense reimbursement schemes were the leading types of fraud reported in these cases.

The U.S.-based Association of Certified Fraud Examiners (ACFE) published the results of the survey in its highly-anticipated 2010 Report to the Nations on Occupational Fraud & Abuse. For the first time, the Report includes global data among the 1,843 cases of fraud that were studied. Of these cases, 99 involved frauds committed in Canada.

Information from CFEs in 106 nations was compiled to develop the benchmarking statistics on occupational fraud losses, detection methods and perpetrators. Since 2002, the biannual Report has evolved and been modified to continue to draw more meaningful information from the experiences of CFEs and the frauds they encounter.

Key findings from the 84-page Report include:

• Frauds committed from the top of an organisation are the most damaging. While the study found that the largest percentage of Canadian frauds in the study were committed by lower level employees (46.1 percent), those committed by managers (36 percent) and owners/executives (18 percent) were far more costly. The median loss from frauds committed by managers was about $254,000 CAD, and the median loss from frauds committed by owners/executives was about $330,500 CAD.

• Fraud perpetrators lurk in accounting and primary operations departments. Almost ¼ of the Canadian frauds in the study were committed by perpetrators in their organisation’s accounting department. More than 20 percent worked in primary operations.

• More frauds are detected by tip than by other means. In a trend reflected worldwide, the impact of anonymous fraud hotlines is clear, as more than 46 percent of the Canadian frauds in the study were detected by tip, followed by management review (15.5 percent) and internal audit (12.4 percent).

The Report also details findings such as how organizations were affected based upon industry, how the implementation of anti-fraud controls affected exposure to fraud, additional breakdowns of fraud statistics by geographical region and the most common behavioural traits observed among fraud perpetrators.

The 2010 Report to the Nations is available for download online at the ACFE’s web site: The Report is in PDF format.

The first Report to the Nation was published by the ACFE in 1996. The ACFE has published subsequent editions in 2002, 2004, 2006, 2008 and now 2010. Over that time, the Report has come to be regarded as the most authoritative statistical resource available on occupational fraud.

About the Association of Certified Fraud Examiners
The ACFE is the world's largest anti-fraud organisation and premier provider of anti-fraud training and education. Together with more than 50,000 members, the ACFE is reducing business fraud world-wide and inspiring public confidence in the integrity and objectivity within the profession. For more information, visit

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