According to Certified Fraud Examiners an estimated 6% of revenues will be lost this year as a result of occupational fraud and abuse. Listed below are a few more fraud facts: * The typical perpetrator is a first-time offender, only 7% of occupational fraudsters have prior convictions for fraud-related offenses. * Small businesses are the most vulnerable to occupational fraud and abuse with the average scheme causing $127,500 in losses. * 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. * The average scheme lasts 18 months before detection. * The most common method for detecting fraud is by a tip from an employee, customer, vendor or anonymous source. The second most common method is by accident. * Over 80% of occupational frauds involve asset misappropriations. Cash is the targeted asset 90% of the time * Corruption schemes account for 13% of all occupational frauds and cause on average over $500,000 in losses. * Fraudulent statements are the most costly form of occupational fraud with median losses of $4.25 million per scheme. Source: Association of Certified Fraud Examiners 2002 Report to the Nation Occupational Fraud and Abuse