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Occupational Fraud – Background & Statistics
Risk Management Considerations
Best Practices & Tips
The use of one’s occupation for personal
enrichment through deliberate misuse or
misapplication of the employing
organization’s resources or assets
©2012 Association of Certified Fraud Examiners, Inc. 4
Size of Victim Organization — Frequency
©2012 Association of Certified Fraud Examiners, Inc. 5
Organization Type of Victim — Median Loss
©2012 Association of Certified Fraud Examiners, Inc. 6
Position of Perpetrator — Median Loss
Assessment
Reduction◦ Preventative
◦ Detective
Transfer
Acceptance
Establish & maintain an anti-fraud culture
Employee training & education
Enforce fraud-related & code of conduct policies
Respond to identified weaknesses in internal control
Active fraud-related oversight by Board
Criminal & civil background checks
Credit checks
Past employment & education verification
References check
Drug screening
Segregation of duty
General cash controls◦ Receipts
◦ Disbursements
Use of authorizations, reviews & “surprise audits”
Job rotations and mandatory vacations
Fraud reporting mechanisms
©2012 Association of Certified Fraud Examiners, Inc. 12
Primary Internal Control Weakness Observed by CFEs
