• United States



by CSO Staff

Fraud Report

Dec 01, 20061 min
Data and Information SecurityFraud

Prevalence of various types of fraud

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