0ccupational fraud continues to be costly for organizations worldwide, with more than one-fifth of fraud incidents causing losses of at least US $1 million in 2011, according to the Association of Certified Fraud Examiners' (ACFE's) 2012 Report to the Nations. The median loss from occupational fraud was US $140,000, notes the biannual ACFE survey of 34,275 certified fraud examiners in 94 countries. This number is down from US $160,000 in ACFE's 2010 report.
The smallest organizations suffered the largest median losses. These organizations typically implement fewer anti-fraud controls than their large counterparts, which increases their vulnerability to fraud, the report asserts.
Most of the 1,388 frauds (77 per-cent) investigated by respondents in 2010 and 2011 were committed by individuals working in accounting, operations, sales, executive and upper management, customer service, and purchasing. Frauds by own-ers and executives were the most costly by far, with a median loss of US $573,000, compared with US $180,000 for...