RubinBrown is promoting International Fraud Awareness Week, November 11-17, 2012 to increase businesses anti-fraud awareness and offer education resources.
“While fraud prevention and detection is a year-round endeavour, International Fraud Awareness Week
provides a great opportunity to spotlight this serious problem and stress the importance of anti-fraud
training and education,”
-ACFE President and CEO James D. Ratley, CFE
Organizations around the world lose an estimated five percent of their annual revenues to fraud, according to a survey of fraud experts conducted by the Association of Certified Fraud Examiners (ACFE). International Fraud Awareness Week helps cast a spotlight on this urgent problem.
In the 2012 Report to the Nations on Occupational Fraud & Abuse, the ACFE discovered:
- Fraud schemes are extremely costly. The median loss caused by the occupational fraud cases in the ACFE study was $140,000. More than one-fifth of the frauds involved losses of at least $1 million.
- Schemes can continue for months or even years before they are detected. The frauds in the study lasted a median of 18 months before being caught.
- Occupational fraud is a global problem. Though some findings differ slightly from region to region, most of the trends in fraud schemes, perpetrator characteristics and anti-fraud controls are similar regardless of where the fraud occurred.
- Lack of organizational controls contributes to fraud. Lack of internal controls, overrides of existing controls, and lack of management review were factors that were contribute to fraud in the majority of cases reported.
- Small businesses are especially vulnerable to occupational fraud. These organizations are typically lacking in anti-fraud controls compared to their larger counterparts, which makes them particularly vulnerable to fraud.
- Tips are key in detecting fraud. Occupational frauds are much more likely to be detected by tip than by any other means. This finding reinforces the need for promoting awareness to foster an informed workforce.
- Behavioral Red Flags are present. The most frequently observed behavioral red flags include: living beyond means, financial difficulties, unusually close association with vendors or customers, and excessive control issues.
- Fraud losses are not recovered. 40%-50% of victim organizations do not recover any of their fraud related losses.
RubinBrown encourages your organization to participate in "Fraud Week" - share this e-focus, check out the resources available at www.FraudWeek.com, and encourage discussions about fraud within your organization.
Please contact us if you have any questions or for more information about RubinBrown's Fraud and Forensic services.
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