Michael Blanski gave us a synopsis from a case report from the Association of Certified Fraud Examiners (ACFE). This biannual study provides the industry an important report highlighting the current state of affairs from a fraud perspective.
- From a global perspective, fraud constituted 22% of claims of $1M or more, with 55% conducting fraudulent activity of less than $100k.
- The longer the fraud occurs without being identified, the more gets stolen.
- Misappropriation of funds was the largest form of fraud
- Many cases took an average of 16 months before being detected
- Tips are the highest form of identifying fraud, with internal auditing being the second highest
- External audits are not as effective as people believe them to be (only identify 4% of cases)
- Smaller organizations are more likely to have fraud occurring, due to multiple tasks assigned to one person
- 53% of companies never recover from fraudulent schemes
Placing parameters in place from an internal perspective is extremely important to help identify any fraud that may be occurring in your place of business. Michael and his team can help consult your organization on how to place the proper measures to prevent any fraud from possibly proliferating.
Contact Michael Blanski or visit his website at https://www.gbbcpa.com/certified-public-accountants-illinois/ to learn more today.