According to surveys conducted by the Association of Certified Fraud Examiners, it is generally believed that five to seven percent of a company’s annual revenues is lost to fraud. Occupational fraud can occur in large or small amounts, involve any combination of employees, customers and management, usually benefits the perpetrators directly, and typically is associated with a perceived opportunity both to commit and conceal the fraud, often as a result of weak or the ability to circumvent or override internal controls. The most common types of fraud are those that can be accomplished by an employee working alone.
The next most common type of fraud involves one employee working with an outside agent or more than one employee working together. The latter usually occurs less frequently but typically results in larger losses. Click here for PBTK fraud case studies.
Unfortunately, most frauds are discovered through third party “tips” as opposed to management’s efforts to prevent and detect it. As a result, occupational fraud schemes frequently continue for years before they are discovered. We can help you:
While no system of internal control can totally prevent collusion and the willful intent to circumvent controls, you should not just wait for the fraud tip line to ring to realize you might have a problem. Our CPAs and Certified Fraud Examiners can be part of your solution.