Occupational Fraud Statistics
C U R R E N T F R A U D S T A T I S T I C S
According to the ACFE 2020 Report to the Nations Global Study on Fraud and Abuse, this is how much your business could lose on average to FRAUD Per Year!
“The Association of Certified Fraud Examiners report that U.S. Businesses will lose an average of 5% of their gross revenues to fraud.”
It is reported that from the 2018 ACFE’s Report To The Nations that the private companies and small business rank highest in occupational fraud frequency at 42% compared to large corporations, government and non-profits. The biggest contributing factor is the lack of internal controls.
PRIVATE COMPANIES WHICH INCLUDE SMALL BUSINESSES had a median loss of $164,000.
- The small businesses have ranked highest in fraud frequency from the ACFE’s report the nation from 2002 to 2018 with combined averages showing that the frequency of small businesses fraud is at 28% compared to larger organizations at a 22-26%. These statistics show that the small business owner does not have the proper tools or training to prevent fraud from occurring in their business.
- Corruption is the most common fraud scheme ranking at 32% of businesses with fewer than 100 employees and at 43% of frequency with organizations who have more than 100 employees.
- Billing Schemes are ranked as the second most common at 29% for organizations with fewer than 100 employees.
It is also reported that fraud committed by owners and executives tend to be extremely costly.
- The median loss for owner and executive fraud is $850,000.
- 65% of owner/executive frauds involved corruption
- 27% of owner/executive frauds involved financial statement fraud
- Owners and executives are more likely to collude with others
- Owners and executives engaged in non-fraud-related misconduct more often at 62%
- Bullying or intimidation was the most common, observed in 41% of the owner and executive cases.
- 1 in 8 frauds were detected by a third-party auditor or law enforcement officer compared to 1 in 25 with non-owner executives.
Common Methods of Fraud Schemes in Small Business
- Billing Schemes
- Wire Transfer Schemes
- Expense Reimbursement Schemes
- Register Disbursements
- Payroll Schemes
- Cash Larceny
- Check Tampering
- Inventory Theft
- Financial Statement Fraud
- Corruption Schemes