Written By ESR News Blog Editor Thomas Ahearn
Sponsored by the Association of Certified Fraud Examiners (ACFE), International Fraud Awareness Week, which runs from November 16 to 22, 2014, is dedicated to fraud awareness, detection, and prevention and is a global effort to minimize the impact of fraud by promoting anti-fraud awareness and education. For more information about International Fraud Awareness Week – including Fraud Week resources, presentations, anti-fraud tools, and steps to combat fraud – please visit http://www.fraudweek.com/.
According to ‘The Cost of Complacency’ infographic using data from ACFE’s 2014 Global Fraud Study ‘Report to the Nations on Occupation Fraud and Abuse,’ an incident of fraud costs a company a median of $145, 000. Nearly a quarter of these cases of fraud cost the business at least $1 million. In addition, the report found:
- The longer a fraud lasts before it is detected, the more the victim organization loses, from an average of $50,000 if detected in less than 7 months to an average of $965,000 if detected after 60 months.
- Proactive measures catch fraud sooner and minimize losses. Fraud that is caught by reactive measures longer and cause more harm. A proactive measure such as surveillance/monitoring can limit damage by fraud to an average of $49,000 while a reactive measure such as being notified of fraud by law enforcement can cost an average of $1,250,000.
- In organizations that employ Certified Fraud Examiners (CFEs), fraud losses are 55% lower on average. When CFEs are on staff, fraud losses average $93,000 compared to an average of $207,000 when CFEs are not on staff.
The AFCE suggests the following basic steps that any organization can take to help combat fraud:
- Establish and Communicate a Fraud Policy: ACFE provides Sample Fraud Policy (PDF) for download.
- Take the Fraud Prevention Check-Up: ACFE offers a Fraud Prevention Check-Up to help identify and manage fraud risks.
- Establish an Anti-Fraud Hotline: Learn about EthicsLine, the official anonymous hotline of the ACFE.
- Use Anti-Fraud Resources: Free resources on International Fraud Awareness Week website, Fraud Examiners Manual & Small Business Fraud Prevention Manual.
- Become an Official Supporter of Fraud Awareness Week: Sign Up with the Supporter Registration Form.
Founded in 1988 and celebrating its 25th anniversary, the ACFE is the world’s largest anti-fraud organization and premier provider of anti-fraud training and education. The ACFE administers the Certified Fraud Examiner (CFE) credential, which denotes proven expertise in fraud prevention, detection, deterrence, and investigation. To learn more about the ACFE, visit http://www.acfe.com/.
Employment Screening Resources (ESR) Takes Steps to Combat Fraud
Employment Screening Resources® (ESR) – ‘The Background Check Authority®’ – is a nationwide background check provider accredited by the National Association of Professional Background Screeners (NAPBS). ESR’s SOC (Service Organization Control) 2 Audit Report confirms the company meets high standards set by the American Institute of Certified Public Accountants (AICPA) for protecting the security, confidentiality, and privacy of consumer information used to process background checks. To learn more about ESR, call 888.999.4474 or visit www.ESRcheck.com.