To prevent fraud, offer a hotline, train employees on fraud prevention, report says
"For all geographic regions, corruption and billing schemes comprised more than 50% of the frauds reported to the ACFE, making those types of schemes a worldwide risk.
The ACFE survey also found that:
"For all geographic regions, corruption and billing schemes comprised more than 50% of the frauds reported to the ACFE, making those types of schemes a worldwide risk.
The ACFE survey also found that:
- Small businesses are particularly vulnerable to fraud because they often have fewer resources and less effective fraud controls than larger organizations.
- In 49% of cases, the victim organization had recovered no losses from fraud at the time of the survey. Just 16% reported recovery of 100% of losses.
- As in 2010, accounting was the most common area of employment for perpetrators, representing 22% of cases. Operations ranked second at 17%.
- Behavioral red flags most commonly associated with perpetrators were: living beyond their means (36%) and financial difficulties (27%)."
As the report was issued buy the ACFE on May 10, 2012, I will read it and provide my insights at a later time this month. I would like to assert the fact that is clear enough for us as experts in fighting fraud and corruption: The most effective fraud prevention and detection is Whistle Blowing ( Tips and Hotline).
