9/16/2016 1 The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 9/16/2016 ACFE 2016 Report to the Nations on Occupational Fraud and Abuse October 26, 2016 Allan Bachman, CFE Education Manager Association of Certified Fraud Examiners Fraud is Hidden • By its very nature its difficult to measure fraud. • Unlike other crimes, until it is discovered, there is no way to know. • There is a “tip of the iceberg” potential to all of these statistics. 3
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ACFE 2016 Report to the Nations on Occupational Fraud and ... · ACFE 2016 Report to the Nations on Occupational Fraud and Abuse October 26, 2016 Allan Bachman, CFE Education Manager
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9/16/2016
1
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:9/16/2016
ACFE 2016 Report to the
Nations on Occupational
Fraud and Abuse
October 26, 2016
Allan Bachman, CFE
Education Manager
Association of Certified Fraud Examiners
Fraud is Hidden
• By its very nature its difficult to measure fraud.
• Unlike other crimes, until it is discovered, there is no way to know.
• There is a “tip of the iceberg” potential to all of these statistics.
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9/16/2016
2
Executive Summary
• Typical organization loses 5% of revenues as a result of fraud.
• Total losses by cases examined exceeded $6.3 billion.
– The average loss per case was $2.7 million
– Direct loss does not include indirect losses
• It cannot be determined what the actual global losses due to fraud actually are.
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How Occupational Fraud Is Committed
• Most frauds originated in the accounting department (16.6%).
• 75% of frauds were committed in one of these departments: