Organisations Lose 5% of Revenues to Fraud, Estimates ACFE
Organisations around the world lose an estimated 5% of their annual revenues to fraud, according to a survey of certified fraud examiners (CFEs) who investigated cases between January 2008 and December 2009. Applied to the estimated 2009 gross world product, this figure translates to a potential total fraud loss of more than US$2.9 trillion.
The Association of Certified Fraud Examiners (ACFE) has published the results of the survey in its ‘2010 Report to the Nations on Occupational Fraud & Abuse’. For the first time, the report includes global data among the 1,843 cases of fraud that were studied.
Information from CFEs in 106 nations was compiled to develop the benchmarking statistics on occupational fraud losses, detection methods and perpetrators. Since 2002, the biannual report has evolved and been modified to continue to draw more meaningful information from the experiences of CFEs and the frauds they encounter.
“Fraud knows no boundaries, and anti-fraud professionals worldwide face more challenges than ever in detecting and combating it,” said ACFE president James Ratley, CFE. “Expanding our report to include global data allows the ACFE to provide a more accurate picture of the nature of fraud and the level to which it impacts organisations around the world.”
Key findings from the report include:
The report also details findings such as how organisations were affected based upon industry, how the implementation of anti-fraud controls affected exposure to fraud, the breakdown of fraud statistics by geographical region and the most common behavioural traits observed among fraud perpetrators.