FinanceRegs.com » 5 things you don’t know about workplace fraud

5 things you don’t know about workplace fraud

August 29, 2008 by Carol Katarsky
Posted in: Best practices, Communication, Fraud prevention, Hiring & training staff, In this week's e-newsletter, Internal controls, Latest news & views

If you do your job right, fraud isn’t much of an issue at your company. Still, it’s good to keep an eye on what the crooks are planning.

Data fom the most recent Report to the Nation on Occupational Fraud shed some light on the most recent trends in attempted — and successful — fraud:

  •  U.S. organizations lose an average of 7% of their annual revenues to fraud.
  • The median loss caused per company was $175,000.
  • If a scam or fraud scheme does get past a company’s controls, it generally will continue for two years or more before it’s caught.
  • The most common perpetrator of a fraud attempt is someone in the accounting department or upper management. And most crooks are first-time offenders, so a background check doesn’t offer much help. Only 7% of fraud perpetrators in the study had prior convictions. Only 12% had been terminated by a prior employer for fraud or related issues.
  • The most common way for fraud to be uncovered is by a tip.  
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