Fraud & Asset Misappropriations
We often hear about high-profile fraud cases in the news; however, what we don’t realize is how often it happens in our local communities, schools, and businesses. We all share the responsibility for understanding the high-risk areas in our businesses and in the organizations we serve. Let’s look at some key statistics from the 2018 Global Study on Occupational Fraud and Abuse.
Of the three primary categories of occupational fraud, asset misappropriations are by far the most common, occurring in 89% of the cases in the study. Asset misappropriations include theft of cash receipts, such as skimming or misuse of receivables, and fraudulent disbursements, such as payroll schemes or check and payment tampering. The median loss for this type of fraud was $114,000 and the median duration was 16 months. Fraud is most often initially detected as a result of tips from employees or customers of the victim organization, which is why it is imperative that we all stay vigilant.
The data in this report indicates that fraudsters tend to start small and increase their frauds rapidly over the first three years. This is why it is so important for organizations to implement internal controls and fraud detection mechanisms to catch fraudulent activity quickly and minimize the damage.
Click here for a list of things you can do to protect your organization.
Click here to access the 2018 Global Study on Occupational Fraud and Abuse.
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