Global Fraud Costs in the Trillions

By: Absolute Team | 6/27/2012

The Association of Certified Fraud Examiners (ACFE) has recently released its 2012 Report to the Nations outlining worldwide occupational fraud between January 2010 and December 2011.

The report, which looks at 1,388 cases of fraud in 94 countries, indicates that global fraud loss to organizations costs up to $3.5 trillion.

Key findings from the report:

  • A typical organization loses 5% of revenue to fraud
  • The median loss caused by fraud was $140,000
  • More than 20% of organizations had losses of at least $1 million
  • The smallest organizations suffered the largest median losses (probably due to fewer anti-fraud controls)
  • Frauds lasted a median of 18 months before being detected
  • The most common types of fraud were: asset misappropriation, financial statement fraud and corruption schemes

Given how similar fraud is to insider theft of data, it's interesting to read the report and examine potential motivators, red flags and prevention techniques.

Have you had incidents of fraud in your company? How did you deal with them?

Financial Services