The Impact of Internal Control Weaknesses on Occupational Fraud: Key Findings from the 2024 ACFE Report to the Nations

The 2024 ACFE Report to the Nations highlights the critical role of internal control weaknesses in the occurrence of occupational fraud. The most common contributing factor was a lack of internal controls, accounting for 32% of fraud cases, followed by the override of existing controls at 19%. Combined, these two factors were responsible for more than half of the frauds in the study. The report also emphasizes how fraud risks vary depending on the perpetrator's position within the organization. While a lack of internal controls was the top contributor across all levels, frauds committed by owners and executives were more likely to involve a poor tone at the top, while frauds committed by mid-level managers and employees were often due to insufficient management review. Strengthening internal controls and addressing these position-specific risk factors can help organizations better prevent and detect fraud. 

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