The 2014 Report to the Nations on Occupational Fraud and Abuse, a study published every two years by the Association of Certified Fraud Examiners (ACFE), details the costs, schemes, perpetrators and victims associated with occupational fraud. The results of the 2014 ACFE study revealed:
- The typical organization loses 5 percent of its revenues each year to fraud.
- Domestic organizations lost about $840 billion to fraud in 2013.
- The global median loss caused by fraud is $145,000.
- The median duration to uncover a fraud scheme from start to finish took 18 months.
- Most fraudsters in the study had no prior criminal record.
The Weaver e-newsletter article New Fraud Study: How Can Your Organization Prevent Losses? further highlights the study’s findings, as well as provides guidance on proactively fighting and detecting fraud in your organization.
Fraud can happen to any company, any size, anywhere. And due to loss that slides under the radar, the consequences of fraud are most likely even greater than this study reveals.
The concept of segregation of duties – dividing conflicting or incompatible responsibilities among more than one individual – is a vital fraud…