This report by Association of Certified Fraud Examiners explores the costs, methods, perpetrators and victims of occupational fraud. It reveals that organizations face numerous risks to their success; economic risk, disaster risk, supply-chain risk, regulatory risk, and technology risk all affecting organizations in different ways and to varying degrees. While fraud risk is just one of the many entries on this list, it is universally faced by all business and government entities. Any organization with assets is in danger of those resources being targeted by dishonest individuals. And, unfortunately, a notable portion of that threat comes from the very people who have been hired to carry out the organization’s operations. It is this risk—the risk of occupational fraud1—that the report explore. The CFEs who participated in our survey estimated that the typical organization loses 5% of revenues in a given year as a result of fraud. The total loss caused by the cases in the study exceeded $6.3 billion with an average loss per case of $2.7 million. Among the various forms of asset misappropriation, billing schemes and check tampering schemes posed the greatest risk based on their relative frequency and median loss.
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