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Each month we’ll be doing our best to update and refresh the risk management content on these pages in order to inform and educate your credit union on risk management issues impacting your operations.

 

In the remaining months of 2009, we’ll report the following 2008 ACFE reporting findings.

  • Cost of Fraud – August 2009
  • How Fraud is Committed – September 2009
  • Detection of Fraud Schemes – October 2009
  • Victim Organizations – November 2009
  • The Perpetrators – December 2009

Enjoy…and again, thanks goes to the good research and work completed by the professionals at the ACFE (www.acfe.com).

 

July 2009

2008 Report to the Nation on Occupational Fraud & Abuse

 

In this July 2009 edition, we’re going to start with the basics, focusing on an overview of fraud trends across the nation with an executive summary to give you a "big picture" of fraud trends in the workplace.

 

To do this, we’ve done the research and have read materials from reputable sources such as the Association of Certified Fraud Examiners located in San Antonio, Texas.

 

Executive Summary

 

The ACFE recently published their 2008 Report to the Nation on Occupational Fraud & Abuse. This report is based on 959 cases of occupational fraud which were reported by the Certified Fraud Examiners who investigated and resolved them. Here are the basic findings of this study.

  • Fraud Schemes are Expensive – average expense (loss) was $175,000.
  • Detection Can Take Years – took 2 years from start of fraud to detection.
  • Tips – 46% of detection came from tips, versus audits, internal controls, etc.
  • Anti-Fraud Controls – These correlate to lower losses
  • Banking Targeted – 15% of victims were financial institutions, followed by government (12%) and healthcare (8%).
  • Lack of Internal Controls – 35% attributed this to fraud losses.
  • Victimization Equals Change – 78% changed internal controls after suffer losses
  • Fraudster Behavior – 39% living beyond their means; experiencing financial stress in their lives (34%).

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Disclaimer
This website is intended to provide general fraud and risk management information.  It is provided with the intent and understanding that the publisher is not engaged in the act of rendering legal, accounting or any other professional advice. The information provided is not intended nor should be used as a substitute for legal advice or other expert opinions and services in specific situations. PCUA is not responsible for the content or comments of contributors to the Fraud Doctor website and reserves the right to delete or block content it deems inappropriate.