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The Association of Certified Fraud Examiners (ACFE) has released its 2012 Global Fraud Study, revealing that workplace fraud takes an average of 18 months to discover and causes a 5 percent revenue loss on average for businesses that fall victim. With International Fraud Awareness Week (Nov. 11 to 17, 2012), upon us here are three things you should know, and resources for helping prevent it within your business:
1. How it happens. According to the report, the ACFE’s research consistently shows fraud falling into three categories:
2. Where it happens. The majority of fraud happens in privately-held businesses, with a median loss of $200,000. Among the most commonly victimized industries are manufacturing, banking and financial services, and government and public administration. Regardless of your industry, you should also be aware of the six departments where nearly 80 percent of fraud occurs: accounting, operations, sales, executive/upper management, customer service and purchasing.
3. The red flags. Occupational fraud is mostly committed by first-time offenders with stellar employment history. However, fraudsters typically display one of five red flag behavioral changes before actually committing the act, including:
To help you get started on the path to fraud prevention, we’ve compiled the following tools:
Doeren Mayhew’s Troy, Houston and Ft. Lauderdale CPAs and certified fraud examiners stand ready to help you put an effective internal controls program in place to protect your business. For more information, contact us.
Sources: Association of Certified Fraud Examiners “2012 Global Fraud Study Report to the Nations”
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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