According to research conducted by the Association of Certified Fraud Examiners (ACFE), U.S. organizations lose an estimated 7 percent of annual revenues to fraud. Based on the projected U.S. Gross Domestic Product for 2008, this percentage indicates a staggering estimate of losses around $994 billion among organizations, despite increased emphasis on anti-fraud controls and recent legislation to combat fraud.
The ACFE’s Report to the Nation on Occupational Fraud & Abuse details the survey results of 959 Certified Fraud Examiners (CFEs) throughout the US who were asked to provide specific information on one fraud case he or she had personally investigated that met the following criteria:
- The case involved occupational fraud;
- The fraud occurred within the last two years;
- The investigation of the fraud was complete; and
- The CFE was reasonably sure that the perpetrator had been identified.
The end result is a comprehensive report that sheds light on occupational fraud and abuse while offering stark lessons and valuable insights about its prevention and detection.