Corruption Conflicts of Interest Cash Theft of Cash on Hand Theft of Cash Receipts Fraudulent Disbursements Inventory and All Other Assets Purchasing Schemes 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 Refunds Forged 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 Extortion Bribery Net Worth/ Net Income Overstatements Net Worth/ Net Income Understatements Asset Misappropriation Financial Statement Fraud the fraud tree occupational 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
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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
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