Key-Findings - acfe.com

1 INTERNAL CONTROL WEAKNESSES. 2,690 $7 billion+. Median duration WERE RESPONSIBLE FOR NEARLY Owners/executives of a fraud scheme HALF OF FRAUDS accounted for IN TOTAL LOSSES a small percentage real cases of occupational fraud of cases Losses caused by men from $130,000 were 75% larger than losses caused by women 125 countries MEDIAN LOSS PER CASE. MONTHS 1. in 22% ALL 18 ANTI-FRAUD CONTROLS. ANALYZED WERE ASSOCIATED. median losses are far greater 23. OF CASES CAUSED 19% $$$$$$$. industry LOSSES OF. Corruption WITH LOWER FRAUD LOSSES of cases $74,000 when fraudsters categories collude $1 million+ AND QUICKER DETECTION.

2 2. was the most common scheme in every global region but caused a $$$$$$$$$$$$$$. $150,000. median loss of Tips $850,000. 3+. are by far the most common . initial detection method $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$. Asset Misappropriation schemes $800,000 $339,000. are the most common and least costly median loss . internal management $114,000. median loss 89%. tips 40%. audit 15%. review 13%. DATA MONITORING/ANALYSIS and SURPRISE AUDITS were correlated with the largest reductions in fraud loss and duration FRAUDSTERS WHO HAD BEEN. WITH THEIR COMPANY LONGER.

3 Of cases employees Organizations with hotlines detect fraud by tips more often 52% Data monitoring/. analysis 58% STOLE TWICE AS MUCH. provide over half of tips, and nearly lower losses faster detection 85% MORE THAN 5 YEARS' TENURE. $200,000.. 1/3 come from financial statement outside parties 46% of fraudsters fraud schemes OF CASES. 30%. 51% Surprise audits 54% MEDIAN LOSS. are the least common 10% DETECTED displayed at least of cases BY TIP OF CASES. and most costly DETECTED lower losses faster detection one behavioral LESS THAN 5 YEARS' TENURE.

4 BY TIP. Yet only 37% of victim organizations red flag $100,000. of fraud MEDIAN LOSS. implemented these controls HOTLINES NO HOTLINES. Only 4%. Over the past 10 years, occupational fraud SMALL BUSINESSES referrals to prosecution declined 16%. LOST ALMOST. TWICE AS MUCH. PER SCHEME. TO FRAUD. $104,000. MEDIAN LOSS. $200,000 MEDIAN LOSS. TOP REASON FOR. NON-REFERRALS WAS. OF PERPETRATORS. HAD A PRIOR. FRAUD CONVICTION. -16%. FEAR OF BAD. 100+ EMPLOYEES <100 EMPLOYEES PUBLICITY. A MAJORITY OF THE VICTIMS RECOVERED NOTHING. 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 .