The Latest Security & Fraud Trends
The Association of Certified Fraud Examiners (ACFE) recently published “Occupational Fraud 2022: A Report to the Nations,” which highlights the factors and tolls of occupational fraud. This report features frauds that were investigated during the global pandemic. The ACFE provides information about the costs, methods, perpetrators and outcomes of occupational fraud schemes derived from more than 2,000 real cases of fraud affecting organizations in 133 countries and 23 industries.
The report estimates that organizations lose 5% of revenue to fraud each year. The median loss per case is roughly $117,000 and the average loss per case is $1,783,000. Below is a list of additional key findings:
- Asset misappropriation schemes are the most common but least costly.
- Financial statement fraud schemes are the least common but most costly.
- Corruption is the most common scheme in every global region.
- A typical fraud case causes a loss of $8,300 per month and takes 12 months to detect.
- 8% of fraud cases involve the use of cryptocurrency.
While detecting these schemes can be difficult, there are ways to mitigate fraud risks:
- 42% of fraud is detected by someone flagging and reporting a scheme to their IT team.
- Email and web-based fraud reports surpass fraud reports submitted through telephone hotlines.
- Organizations with hotlines detect fraud more quickly and have lower losses than organizations without hotlines.
It’s important for your organization to be proactive about detecting and responding to fraud and other security threats. In addition to staying up to date on the latest fraud trends, we recommend working with a trusted professional service provider, like SST Accountants & Consultants, to effectively protect your organization from the harms of fraud.
Proper education and protection from fraud schemes may require an upfront investment, but a few simple actions will save your company financially in the future, and provide your leadership team with peace of mind, should your employees ever fall victim to a fraud scheme.
At SST Accountants & Consultants, our team of experts stays up to date on the latest fraud trends and works alongside your organization to minimize fraud risk. If you’re looking for a partner to work with you on determining best practices, or navigating a previous fraud incident, contact us today and we will work together to get your organization secure.