The 2016 Association of Certified Fraud Examiners Report to the Nations is now available as a resource for anyone working with employee fraud-related cases. This year’s data includes findings such as:
- The CFEs who participated in the survey estimated that the typical organization loses 5% of revenues in a given year as a result of fraud.
- The median loss for all cases in the study was $150,000, with 23.2% of cases causing losses of $1 million or more.
- Asset misappropriation was by far the most common form of occupational fraud, occurring in more than 83% of cases, but causing the smallest median loss of $125,000. Financial statement fraud was on the other end of the spectrum, occurring in less than 10% of cases but causing a median loss of $975,000. Corruption cases fell in the middle, with 35.4% of cases and a median loss of $200,000.
- 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.
- The longer a fraud lasted, the greater the financial damage it caused. While the median duration of the frauds in our study was 18 months, the losses rose as the duration increased. At the extreme end, those schemes that lasted more than five years caused a median loss of $850,000.
- In 94.5% of the cases in the study, the perpetrator took some efforts to conceal the fraud. The most common concealment methods were creating and altering physical documents.
Download the full report from the ACFE.