Workplace fraud: the truth

  • Fraud, by its very nature, does not lend itself to being scientifically observed or measured in an accurate manner. One of the primary characteristics of fraud is that it is clandestine, or hidden; almost all fraud involves the attempted concealment of the crime.
  • Certified Fraud Examiners estimate that seven percent of revenues are lost as a result of occupational fraud and abuse. Applied to the U.S. Gross Domestic Product, this translates to losses of approximately $994 billion or about $6,000 per employee.
  • All occupational frauds fall into one of three categories: asset misappropriations, corruption, or fraudulent financial statements.
  • Occupational frauds were most often committed by the accounting department or upper management.