VERITI CONSULTING LLC
Eye Opening Financial Fraud Statistics From The United States
TRUTHBEHINDNUMBERS.COMCertified Financial Experts
Who Compiles Data on Fraudulent Activity?
A recent report released by the Association
of Certified Fraud Examiners (ACFE)
featured some remarkable financial fraud
statistics that came as a shock to many
forensics professionals. The frequency of
these crimes was eye opening, as was the
amount of money lost by individuals and
businesses of all sizes.
TRUTHBEHINDNUMBERS.COMCertified Financial Experts
Statistics to Help Detect and Prevent Fraudulent Activity
• A typical scam, measured from the time the activity began until it was discovered by the victim, is around 18 months in duration.
• In the corporate setting, many of those convicted of fraud are first time offenders with relatively uneventful employment histories. In fact, 87% of the thieves had never been charged with a crime involving fraud and 84% had never been punished by an employer for such activity.
TRUTHBEHINDNUMBERS.COMCertified Financial Experts
Statistics to Help Detect and Prevent Fraudulent Activity
• In most cases, 92%, the fraudster was exhibiting behavioral signs of fraudulent activity in the months leading up to detection. Red flags include living beyond their means and having inappropriate business relationships with vendors or customers. Business owners and managers should be aware of the behavioral signs that may indicate fraud in order to prevent it.
• On an annual basis, 5% of corporate revenues are lost due to fraudulent activity. The median loss for companies is $145,000, while 22% of cases involved losses of $1 million or more.
TRUTHBEHINDNUMBERS.COMCertified Financial Experts
Statistics to Help Detect and Prevent Fraudulent Activity
• Corruption scams are on the rise, as they comprised 33.4% of all fraud in 2012 and 36.8% in the 2014 ACFE report. These schemes have a higher price tag than other forms of fraud, at $200,000 on average.
• Some other monetary amounts of note are among companies with less than 100 workers, almost one-third experience losses due to fraud, at an average of $154,000.
TRUTHBEHINDNUMBERS.COMCertified Financial Experts
Statistics to Help Detect and Prevent Fraudulent Activity
• Larger businesses, with 100 or more employees, lose less due to unlawful activity. Just over 23% of these companies suffer losses, on average $128,000.
• The reason is tied to anti-fraud protections. Larger enterprises tend to invest in anti-fraud controls, which serve as a deterrent to crime due to the fact that employees are aware of the measures.
TRUTHBEHINDNUMBERS.COMCertified Financial Experts
Statistics to Help Detect and Prevent Fraudulent Activity
• Companies that have implemented anti-fraud controls had a significant impact on financial fraud statistics. These organizations reduced their financial losses due to fraud and experienced crimes that where shorter in duration, i.e., the activity was discovered faster as compared to businesses with no anti-fraud controls in place.
• Over three-quarters of fraud cases involving corporations were committed by employees in one of seven divisions: Accounting, Customer service, Operations, Sales, Executives/C-Suite, Purchasing, and/or Finance.
TRUTHBEHINDNUMBERS.COMCertified Financial Experts
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PRESENTATION
PRESENTATION BY: VERITI CONSULTING LLC8111 E. THOMAS RD. #120 SCOTTSDALE, ARIZONA 85251
TEL: (877) 520-1280 • EMAIL: [email protected] WWW.TRUTHBEHINDNUMBERS.COM
EXPERT TEAM
TRUTHBEHINDNUMBERS.COMCertified Financial Experts
Liz Monty, CPA/ABV, CFF, CFE, CVA, DABFA
Managing Director
John White, MBA, CPA/ABV, CFF, CFE, CBA, CrFA, ASA
Managing Director
CONTACT VERITI CONSULTING LLC
CONNECT WITH EXPERIENCED FRAUD, FORENSIC & ECONOMIC DAMAGES EXPERTS
CALL: 877-520-1280EMAIL: [email protected]
PRESENTATION BY: VERITI CONSULTING LLC 8111 E. THOMAS RD. #120 SCOTTSDALE, ARIZONA 85251
TEL: (877) 520-1280 • EMAIL: [email protected] WWW.TRUTHBEHINDNUMBERS.COM