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Fraud Report

Prevalence of various types of fraud

December 01, 2006 — CSO —

Fraud Report

The three types of workplace fraud

Cases reported Median loss
Asset misappropriation 1,038 $150,000
Corruption 349 $538,000
Fraudulent statements 120 $2,000,000

Financial statement fraud schemes

Percent of cases
Concealed liabilities 45%
Fictitious revenue 43%
Improper asset valuations 40%
Improper disclosures 38%
Timing differences 28%

Corruption schemes

Percent of cases
Conflicts of interest 62%
Bribery 43%
Illegal gratuities 30%
Extortion 17%
Occupational fraud schemes, by industry
Median loss
Mining $17,000,000
Wholesale trade $1,000,000
Construction $500,000
Manufacturing $413,000
Services $300,000
Banking/financial $258,000

Methods of fraud in small business*

Percent of cases
Check tampering 29%
Skimming 28%
Billing 25%
Corruption 23%
Expense reimbursement 23%
Cash larceny 20%

*Organizations of fewer than 100 employees

Note: Some cases fall under more than one method of classification.
Source: Association of Certified Fraud Examiners, 2006 Report to the Nation

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