With fraud scandals and crimes on the rise, here is a look at a few facts from the Association of Certified Fraud Examiners' 2002 Report to the Nation: *

It is estimated that approximately $600 billion, or about $4,500 per employee will be lost in 2002 as a result of occupational fraud and abuse. *

Organizations with fraud hotlines cut their fraud losses by approximately 50% per scheme. Internal audits, external audits, and background checks also significantly reduce fraud losses. *

Recommended For You

The most common method for detecting occupational fraud is through tips from employees, customers, vendors and anonymous sources. The second most common method of discovery is by accident. *

The typical occupational fraud perpetrator is a first-time offender. *

All occupational frauds fall into one of three categories: asset misappropriations, corruption, or fraudulent statements. *

Over 80% involve asset misappropriations. Cash is the targeted asset 90% of the time. *

Corruption schemes account for 13% and they cause over $500,000 in losses. *

Frauds committed by employees cause median losses of $60,000, while frauds committed by managers or executives cause median losses of $250,000. When managers and employees conspire in a fraud scheme, the median loss rises to $500,000. *

The average fraud scheme lasted 18 months before it was detected.

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.