Fraud is a true affront to any organization. In cases of occupational fraud the very people entrusted to represent the interests of a business, abuse the trust placed upon them for personal gain. Organizations worldwide are impacted by this far-reaching threat.
Asset misappropriation, corruption, financial statement fraud schemes… these categories of fraud embody a wide range of fraudulent behavior including purchasing schemes, bribery, illegal gratuities, extortion, asset overstatements/understatements, cash theft, and more. And it’s a sizable problem. It is estimated that each year organizations face a 5% revenue loss to fraud, resulting in a global loss of $3.5 trillion. More than one-fifth of the crimes cause loss of over $1 million. (According to ACFE)
While not violent, occupational fraud is certainly not victimless.
The effects of occupational fraud go direct to the bottom line, raiding profits and depriving employees, businesses, government agencies, non-profits, ANY organization of the growth and investment it deserves. Fraud is costly in more ways than one since reputation, productivity, and security are often also damaged.
A yearlong study of occupational fraud was the basis for the most recent Report to the Nations on Occupational Fraud and Abuse from the Association of Certified Fraud Examiners (ACFE). The Association analyzed nearly 1,400 cases of fraud from 94 nations, offering a global overview of workplace fraud. The study reveals trends that help portray the perpetrators, the nature of their crimes, and the organizations targeted for fraud across three key categories:
- Asset Misappropriation
- Financial Statement Fraud Schemes