Fraud, by the Numbers

Fraud: The Numbers that Will Blow Your Mind (& Break the Bank)

The numbers don’t lie. Unfortunately, if you’re like 95% of all business owners, your employees do.

This is fraud, by the numbers.

$7 Billion

In 2018, the Association of Certified Fraud Examiners (ACFE) analyzed 2,690 cases of fraud. They found more than $7 billion in total losses.

2x

Smaller organizations are nearly twice as a likely to suffer fraudulent losses.

83.5%

Most fraud cases fall into one of three categories: Asset Misappropriation, Corruption, or Financial Statement fraud. The vast majority of those cases (83.5%) qualify as Asset Misappropriation, a scheme in which an employee steals or misuses an organization’s funds.

5%

A typical organization loses 5% of all revenue to fraud. Chances are, that includes yours.

1/2

Internal control weaknesses are responsible for nearly half of all reported fraud cases. In other words, a large portion of fraudulent activity could be prevented with proactive measures.

4%

Only 4% of perpetrators have a prior fraud conviction. Moral of the story? Just because an employee has a clean record doesn’t mean they won’t commit fraud, when given the opportunity.

85%

…of perpetrators display at least one “Behavioral Red Flag” before/during their fraudulent activity. Red flags include: living beyond their means, being unusually close to a vendor or customer, and experiencing personal financial difficulties.

70%

of corruption cases are perpetrated by someone in a position of authority, most commonly managers.

$0

That’s not a typo. In most cases, defrauded businesses recover nothing.

100%

of businesses are at risk of fraud…

…and 100% have the power to do something about it.

At Klein Hall, our financial experts take a sophisticated, proactive approach to preventing and investing fraud. We partner with businesses like yours to assess vulnerabilities, strengthen your internal controls, and detect fraudulent activity as it occurs.

Learn more about Fraud Services.