Texas (Nov. 1, 2013) – Organizations
lose an estimated 5
percent of their annual revenues to fraud, according to a report published last year by
the Association of Certified Fraud Examiners (ACFE). To help shine a spotlight
on this global problem, more than 900 organizations worldwide are participating in International Fraud Awareness Week, Nov. 3-9,
2013, as official supporters to promote anti-fraud awareness and prevention.
“Fraud Week,” for short, the campaign encourages organizations of all sizes and
industries to host fraud awareness training for employees, conduct employee
surveys to assess levels of fraud preparedness within their organization, post
articles on company websites, newsletters and social media, and team with local
news sources to highlight the problem of fraud.
President and CEO James D. Ratley, CFE, said that the support of organizations
around the world helps make Fraud Week an effective tool in raising anti-fraud
of all sizes and types are susceptible to fraud, and it can have a measurable
impact on their bottom line,” Ratley said. “While prevention and detection is a
year-round endeavor, Fraud Week shines a spotlight on fraud – and supporters of
the campaign demonstrate their understanding that spreading awareness is key in
combating the global fraud threat.”
In its 2012 Report to the
Nations on Occupational Fraud and Abuse, the ACFE found that:
are extremely costly.
The median loss caused by the occupational fraud cases in the ACFE study was $140,000.
More than one-fifth of the frauds involved losses of at least $1 million.
continue for months or even years before they are detected. The frauds in
the study lasted a median of 18 months before being caught.
fraud is a global problem. Though some findings differ slightly from region to
region, most of the trends in fraud schemes, perpetrator characteristics and
anti-fraud controls are similar regardless of where the fraud occurred.
are especially vulnerable to occupational fraud. These
organizations are typically lacking in anti-fraud controls compared to their
larger counterparts, which makes them particularly vulnerable to fraud.
Tips are key in
detecting fraud. Occupational
frauds are much more likely to be detected by tip than by any other means. This
finding reinforces the need for promoting awareness to foster an informed
more information about increasing awareness and reducing the risk of fraud
during International Fraud Awareness Week, visit FraudWeek.com.
2012 Report to the Nations is
available for download online at the ACFE’s website: ACFE.com/RTTN. The Report
is in PDF format.