the fraud tree - ACFE

Post on 25-Mar-2023

0 Views

Category:

Documents

0 Downloads

Preview:

Click to see full reader

Transcript

Corruption

Conflicts of Interest

Cash

Theft of Cash on Hand

Theft of Cash Receipts

Fraudulent Disbursements

Inventory and All Other Assets

PurchasingSchemes

Sales Schemes Bid Rigging

Skimming Cash Larceny

Misuse Larceny

Asset Requisitions

and Transfers

False Sales and Shipping

Purchasing and Receiving

Unconcealed Larceny

Sales

Unrecorded Write-Off Schemes

Lapping Schemes

Unconcealed

Understated

Receivables Refunds and Other

Billing Schemes

Payroll Schemes

Expense Reimbursement

Schemes

Check Tampering

Register Disbursements

Forged Maker False Voids

False RefundsForged Endorsement

Authorized Maker

Altered Payee

Mischaracterized Expenses

Ghost Employee

Commission Schemes

Overstated Expenses

Fictitious Expenses

Multiple Reimbursements

Falsified Wages

Shell Company

Non-Accomplice

Vendor

Personal Purchases

Invoice Kickbacks

Timing Differences

Fictitious Revenues

Improper Asset

Valuations

Concealed Liabilities and

Expenses

Timing Differences

Understated Revenues

Improper Asset

Valuations

Overstated Liabilities and

Expenses

Improper Disclosures

Improper Disclosures

Illegal Gratuities Economic ExtortionBribery

Net Worth/Net Income

Overstatements

Net Worth/Net Income

Understatements

Asset Misappropriation

Financial Statement Fraud

the fraud treeoccupational fraud and abuse classification system

Click on occupational fraud categories below with the icon to view definitions and statistical information from the ACFE’s 2016 Report to the Nations on Occupational Fraud and Abuse.

i

35+65+D35.4%of cases

A scheme in which an employee misuses his or her influence in a business trans-action in a way that violates his or her duty to the employer in order to gain a direct or indirect benefit.

median loss:$200,000

Corruption

84+16+D83.5%of cases

median loss:$125,000

A scheme in which an employee steals or misuses the employing organization’s resources.

Asset Misappropriation

10+90+Dof cases9.6% median loss:

$975,000

A scheme in which an employee intentionally causes a misstatement or omission of material information in the organization’s financial reports.

Financial Statement Fraud

12+88+D11.5%of cases

median loss:$25,000

Theft of Cash on HandA scheme in which the perpetrator misappropriates cash kept on hand at the victim organization’s premises.

19+81+D19.2%of cases

median loss:$70,000

Inventory and All Other Assets A scheme in which an employee steals or misuses non-cash assets of the victimorganization.

10+90+D11.9%of cases

median loss:$53,000

A scheme in which an incoming payment is stolen from an organization before it is recorded on the organization’s books and records.

Skimming

8+92+D8.4%of cases

median loss:$90,000

A scheme in which an incoming payment is stolen from an organization after it has been recorded on the organization’s books and records.

Cash Larceny

22+78+D22.2%of cases

median loss:$100,000

A scheme in which a person causes his or her employer to issue a payment by submitting invoices for fictitious goods or services, inflated invoices or invoices for personal purchases.

Billing Schemes

9+91+D8.5%of cases

median loss:$90,000

A scheme in which an employee causes his or her employer to issue a payment by making false claims for compensation.

Payroll Schemes

14+86+D14.0%of cases

median loss:$40,000

A scheme in which an employee makes a claim for reimbursement of fictitious or inflated business expenses.

Expense Reimbursement Schemes

11+89+D11.4%of cases

median loss:$158,000

A scheme in which a person steals his or her employer’s funds by intercepting, forging or altering a check or electronic payment drawn on one of the organiza-tion’s bank accounts.

Check Tampering

3+97+D2.7%of cases

median loss:$30,000

A scheme in which an employee makes false entries on a cash register to conceal the fraudulent removal of cash.

Register Disbursements

top related