Proactively Addressing Fraud Risks with Targeted Strategies

Gaining insights into common characteristics of fraud perpetrators empowers organizations to develop proactive anti-fraud strategies. Research shows that higher-level authorities, such as owners and executives, tend to be involved in larger financial schemes, with median losses reaching $500,000. In contrast, mid-level managers and staff-level employees are associated with median losses of $184,000 and $60,000, respectively. Additionally, understanding that longer-tenured employees may be linked to higher losses—particularly those employed for over ten years—can guide organizations in implementing focused monitoring and controls. Departments like operations (14%), accounting (12%), and sales (12%) are among the most commonly affected, with corruption being the most prevalent type of fraud. By recognizing these patterns, organizations can strategically allocate resources, enhance internal controls, and build a resilient framework to mitigate potential risks.

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