Not Good News

The Association of Certified Fraud Examiners (ACFE), based in Austin TX, is one of the most respected security and loss prevention groups in the world.

The results of research representing the largest privately funded study ever conducted on the subject of occupational fraud and abuse has just been completed by ACFE. The organization issued its 1996 report to the Nation on Occupational Fraud and Abuse (also known as The Wells Report-named after the Association's Chairman and founder, Joseph T. Wells, CFE, CPA.)

The report's findings are definitely not good news.

The average U.S. organization loses about 6% of its gross revenue to fraud and abuse;
These losses cost $400 billion - nearly twice the Department of Defense's budget;
Three-fourths of the offenses were committed by men;
Losses attributable to managers and executives were four to sixteen times greater than those attributable to staff personnel;
The average organization loses $9.00 a day, per employee, to occupational fraud and abuse;

Of the twelve industries studied over ten years, Banking is third in losses, leading categories such as Health Care, Retail, Insurance and Government. Only Manufacturing and Real Estate Financing took a bigger beating.

You can download your copy of the report at ACFE's website: http://www.cfenet.com

Copyright © 1997 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 7, No. 4, 3/97