April 1, 2015 – The Association of Certified Fraud Examiners reported the typical organization loses 5% of its annual revenue to occupational fraud. Applied to the estimated 2013 Gross World Product, that’s potentially more than $3.7 trillion fraud loss, up from $2.9 trillion total in 2009. You may be stunned to learn the report also found:
- The median loss caused by the occupational fraud cases is estimated at $145,000.
- Nearly one–quarter of the frauds involved losses of at least $1 million.
- The frauds lasted a median of 18 months before being detected.
It isn’t all bad news. The ACFE reports that, “The presence of anti-fraud controls is associated with reduced fraud losses and shorter fraud duration.”
Dopkins recently co-presented a panel discussion with KeyBank, Phillips Lytle LLC and Peter Vito & Associates. To learn more, click here.
You can take steps to reduce your exposure. Gain insight into the most effective ways to prevent, deter and detect employee fraud.
About the Author
Bart F. McGloin CPA CFE CFF
Bart, a partner in our General Services Team, is the chair of the Dopkins Forensic Group and concentrates his practice in the areas of fraud investigations, complex litigation support matters and consulting on issues involving occupational fraud prevention and mitigation.