Survey puts at-work-fraud loss at $2.9 trillion globally
Occupational fraud costs organizations about 5 per cent of their revenue annually, according to the latest data from the Association of Certified Fraud Examiners.
The ACFE brief, entitled “Report to the Nations on Occupational Fraud and Abuse,” found the median loss caused by occupational fraud was roughly $160,000, with nearly one-quarter of the frauds involving losses of at least $1 million.
In many cases, the criminal activities lasted an average of 18 months before even being detected.
The study also found that companies with fewer than 100 employees suffered the greatest percentage of employee theft of all the companies studied, largely because small businesses tend to have far fewer anti-theft controls than larger organizations.
As for how the scams were discovered, the results aren't heartening ― unless you're the one backing up the truck.
The study suggests fraud schemes typically continue for months or years before they’re detected, and that tips from insiders ― informants usually fall into one of three categories: ex-lovers, ex-employees, and ex–business partners ― represent the most common method of detection, three times as often as do management reviews, internal audits, or account reconciliations.
The most common behavioural red flags displayed by the perpetrators were living beyond their means (43 per cent) and experiencing financial difficulties (36 per cent) ― statistics, it seems, that describe most of the people I know.
Have you suffered from employee fraud or pilferage? How did you work against it? As a hard-pressed worker, where do you draw the line?
By Gordon Powers, MSN Money
Posted by: Stone Carlie | Nov 23, 2021 11:33:29 AM
The 2010 Report was quite eye-opening. Small and mid-size businesses are unfortunately disproportionately victimized because of the lack of internal controls to detect this fraudulent activity. Hopefully companies heed this information and work to protect themselves against it.
Posted by: Bantningsmetoder | Nov 7, 2021 4:07:22 PM
Lol. So much money. But does it be for real? haha
Posted by: Badrumsrenovering | Nov 25, 2021 12:32:14 PM
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