Survey & Statistics
Association of Certified Fraud Examiners (ACFE) 2002 Report to the Nation
Over half of the fraud in the survey produced losses in excess of $100,000 & one in six caused losses in excess of $1 million
The average loss in small companies costs $127,500
Average fraud operated for 18 months before detection
Most common method for detection “occupational” fraud was a tip from an employee, a customer, vendor or anonymous source
Fraud was detected by tips 41.1% of the time Internal audit was the second most common method of detecting fraud at 18.6.% of the time
KPMG Fraud Survey 2002
77% of all fraud committed internally
Notification by employee most effective detection tool with internal controls next.