How to Protect Your Business from Corporate Fraud

Fraud in the workplace is a serious problem for all organizations; most common thefts involve cash. Most fraud is ongoing with the average length of the crime being 18 months from inception to discovery. Studies indicate fraud is committed most often by well‐educated professionals in senior positions and is affected by conditions within the organization. While a system of internal controls can certainly deter fraud from occurring it does not always prevent it entirely. In a report to the Nations on Occupational Fraud & Abuse, it was found that:

  • There were 1,388 cases investigated in 100 countries with 43% of the cases found in the U.S.
  • Certified Fraud Examiners estimate $3.5 Trillion global annual fraud losses.
  • The median loss is $140,000.  Small businesses average losses of $200,000.
  • Large companies average losses of $127,000.
  • An average of 5% of annual revenues are estimated to be lost to fraudulent activity.
  • 20% of investigated fraud in the report caused at least $1 million losses.
  • 22% of fraud is committed by accounting department personnel.
  • 12% of fraud is committed by upper management/executives.
  • Twice as many males vs. females commit fraud.
  • 87% of fraudsters are never charged or convicted.

To learn which industries are most commonly victimized, organizational vulnerabilities, ways to prevent fraud and more … download the full article below. How to Protect Your Business from Corporate Fraud JBC.

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