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Association of Certified Fraud Examiners (ACFE) 2008 Report to the Nation on Occupational Fraud & Abuse (PDF File)

This study is based on data compiled from 959 cases ofoccupational fraud that were investigated between January 2006 and February 2008.

Despite increased focus on anti-fraud controls in the wake of Sarbanes-Oxley and mandated consideration of fraud in financial statementaudits due to SAS 99, our data shows that occupational frauds are much more likely to be detected by a tip than by audits, controls or any other means. Forty-six percent of the cases in this Report were detected by tips from
employees, customers, vendors, and other sources. Tips were also the most common means
of detection in 2002, 2004, and 2006.

KPMG Fraud Survey 2006 (PDF 609KB)

Fraud continues to hit the headlines and the bottom line of organisations in Australia and
New Zealand. The survey was derived from the responses to a questionnaire sent in February 2006 to 2,146 of Australia’s and New Zealand’s largest organisations across the public and private sectors. The questionnaire contained 48 questions. It sought information about fraud incidents within the respondents’ business operations during the period April 2004 to January 2006.1 Usable responses were received from 465 organisations, representing just over 21 percent of the surveys distributed.

Total value of fraud reported was $154.9 million with an average value for each organisation of $714,000.

Association of Certified Fraud Examiners (ACFE) 2006 Report to the Nation on Occupational Fraud & Abuse (PDF File)
This study was based on 1,134 cases of investigated cases of occupational fraud in USA between the period of January 2004 to January 2006.

The median loss suffered by organizations with fewer than 100 employees was $190,000 per scheme. This was higher than the median loss in even the largest organizations. The most common occupationalfrauds in small businesses involve employees fraudulently writing company checks, skimming revenues, and processing fraudulent invoices.

Our data supports the use of confidential hotlines and other reporting mechanisms as a fraud
detection tool. Occupational frauds are more likely to be detected by a tip than by other means such as internal audits, external audits or internal controls. The importance of encouraging tips is evident in cases involving losses of $1 million or more. Forty-four percent of the million-dollar frauds in this study were detected by tips. This is more than twice the rate of detection by internal audits and three times the rate of detection by external audits.

KPMG Fraud Survey 2004(PDF File 2152 KB - depending on your connection speed it may take considerable time to download)

Organisations in Australia and New Zealand lost in excess of $456 million to fraud during the period April 2002 to March 2004. A total of 27,657 incidents of fraud were reported by 221 organisations.

Association of Certified Fraud Examiners (ACFE) 2004 Report to the Nation on Occupational Fraud & Abuse (PDF File 561 KB)

This study covers 508 cases of occupational fraud totaling over $761 million in losses. All information was provided by the Certified Fraud Examiners(CFEs) who investigated these cases.

Occupational frauds in our study were much more likely to be detected by a tip than through other means such as internal audits, external audits, and internal controls. Among frauds committed by owners and executives, which tend to be the most costly,over half of all cases were identified by a tip.

Confidential reporting mechanisms reduce fraud losses significantly. The median loss among organizations that had anonymous reporting mechanisms was $56,500. In organizations that did not have established reporting procedures, the median loss was more than twice as high.

While Sarbanes-Oxley only requires publicly traded companies to establish confidential reporting mechanisms for employees, our data strongly suggests that these programs should also embrace third-party sources such as customers and vendors. Among cases that were detected by a tip, 60% of the tips came from employees, 20% of the tips came from customers, 16% came from vendors, and 13% came from anonymous sources.

Whistleblowing: An Australian Perspective Survey conducted by Ernst & Young in conjunction with the Australian Compliance Institute June 2004©(PDF 199 KB)
The survey reflected the opinions of 132 respondents of differing seniority across a diverse range of organisations.

80% of respondents believe employees would be more likely to report unethical behaviour if they could do so anonymously.
44% of respondents have or are currently implementing a whistleblower program consistent with the Australian Standard

60% of respondents have no whistleblower program but believe their organisation would benefit from doing so.

66% of respondents believe a whistleblowing program could positively impact an organisation’s culture.

Business Ethics and Compliance in the Sarbanes-Oxley Era A Survey by Deloitte & Touche LLP and Corporate Board Member Magazine 2004© (PDF 710 KB)
98% of survey participants agree that an ethics and compliance program is an essential component of corporate governance.

"If whistleblower helplines are not managed by a third party, companies may have an issue with the anonymity requirements of Sarbanes-Oxley. These requirements are based on the premise that true anonymity of reporting can only be attained if the calls are fielded by someone outside the organization. We expect that in-house managed helplines may become a thing of the past."

8th Ernst & Young Global Fraud Survey 2003(PDF File 376 KB)

85% of all fraud committed internally or by those on the payroll

Notification by employees next most effective detection tool to internal controls

The Freehills Whistleblowing E Survey 2003 (PDF File)

Association of Certified Fraud Examiners (ACFE) 2002 Report to the Nation                          (PDF File 857 KB)

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 (PDF File 784 KB)

77% of all fraud committed internally

Notification by employee most effective detection tool with internal controls next.