Analyzing the Financial Impact of Fraud Detection: Insights from the 2024 ACFE Report to the Nations

The 2024 ACFE Report to the Nations presents a comprehensive analysis of the financial impact of fraud uncovered through various detection methods. By examining both median and mean loss amounts, the report offers a more complete understanding of fraud costs. For example, tips lead to a median loss of $155,000, but the mean loss is much higher at $1.5 million. Other methods like internal audits, management reviews, and document examinations show median losses ranging from $100,000 to $133,000, while the mean losses vary from $1.3 million to $1.6 million. Fraud detected by external audits results in the highest mean loss at $2.2 million, highlighting the significant role that thorough and proactive audits play in identifying substantial fraud. Additionally, unique detection methods like law enforcement notifications and confessions expose especially high losses, with mean losses reaching as high as $6.1 million in the case of law enforcement involvement. 

Thank you to the ACFE’s Report to the Nations!