ACFE Report Provides Insights on Occupational Fraud in Canada
Corruption, Billing and Expense Schemes Most Common in Survey
Austin, TX (Vocus) June 29, 2010 -- The median fraud loss for organisations in Canada is about $127,000
(CAD), according to a survey of Certified Fraud Examiners (CFEs) who investigated cases between January 2008
and December 2009. The study found corruption, billing and expense reimbursement schemes were the leading
types of fraud reported in these cases.
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. Of these cases, 99 involved frauds
committed in Canada.
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:
• Frauds committed from the top of an organisation are the most damaging. While the study found that the
largest percentage of Canadian frauds in the study were committed by lower level employees (46.1 percent), those
committed by managers (36 percent) and owners/executives (18 percent) were far more costly. The median loss
from frauds committed by managers was about $254,000 CAD, and the median loss from frauds committed by
owners/executives was about $330,500 CAD.
• Fraud perpetrators lurk in accounting and primary operations departments. Almost ¼ of the Canadian frauds
in the study were committed by perpetrators in their organisation’s accounting department. More than 20 percent
worked in primary operations.
• More frauds are detected by tip than by other means. In a trend reflected worldwide, the impact of