ACFE Report Provides Insights on Occupational Fraud in Africa
Corruption, Billing Schemes Most Common Among Fraud Cases in Survey
Austin, TX (Vocus) July 1, 2010 -- The median fraud loss for organisations in Africa is $205,000 USD,
according to a survey of Certified Fraud Examiners (CFEs) who investigated cases between January 2008 and
December 2009. The study found corruption and billing schemes were the leading types of fraud reported in
African cases and others throughout the world.
The U.S.-based Association of Certified Fraud Examiners (ACFE) published the results of the survey in its
highly-anticipated 2010 Report to the Nations on Occupational Fraud & Abuse. For the first time, the Report
includes global data among the 1,843 cases of fraud that were studied.
Information from CFEs in 106 nations was compiled to develop the benchmarking statistics on occupational
fraud losses, detection methods and perpetrators. Since 2002, the biannual Report has evolved and been modified
to continue to draw more meaningful information from the experiences of CFEs and the frauds they encounter.
Key findings from the 84-page Report include:
• Fraud schemes among African organisations are costly. Worldwide, the median loss caused by the
occupational fraud cases in the ACFE study was $160,000 USD; yet for the 112 African cases studied, the median
loss was higher ($205,000 USD).
• Frauds committed from the top of an organisation are the most damaging. The study found that the largest
percentage of African frauds in the study were committed by lower level employees (44.4 percent) and managers
(43.5 percent), at a median loss of $150,000 USD and $270,000 USD, respectively. However, frauds committed
by owners/executives (12 percent) were far more costly at a median loss of $1 million USD.
• There is a significant gender gap among African fraud cases. More than 75 percent of the African frauds in
the study were perpetrated by males, compared to just under 60 percent among cases in North America.