An excerpt from “Fraud: Current Trends & Information”
Trillions of dollars of revenue worldwide is lost due to fraud. According to the Association of Certified Fraud Examiners 2016 Report to the Nations on Occupational Fraud and Abuse, 5 percent of annual revenues are lost to fraud--that is $3.7 trillion worldwide. While the median loss was $150,000, 23 percent of cases involved losses of greater than $1 million. Typically, smaller organizations suffer the larger losses. It is important to be aware of the current trends in fraud so your company can avoid occupational fraud and abuse.
In 83 percent of fraud cases, the fraud involved asset misappropriation. Most frequently victimized were private companies and those in the banking and financial services industry. While employees were typically the perpetrators, owners and executives were the ones who generated the largest fraud losses. The primary weakness in many of these cases was lack of internal controls.
There are many ways you can safeguard against fraud – from implementing background checks into your hiring process, providing a fraud hotline for employees and making sure you have proper checks and balances in place. Our team of forensic specialists can help you get started, evaluate your current processes and programs, and even help you investigate fraud when the need arises.