Fraud: A $3.7 Trillion Global Problem

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Fraud…it’s insidious and pervasive. We have recently reviewed valuable reports that help provide you and your financial institution clients with a closer look at the who, what, when, where and cost of fraud.
Part One of this two-part series summarizes some of the highlights of the ACFE fraud report below. Please share this with anyone you think could benefit and contact us so we can help you and your financial institution clients mitigate losses when fraud occurs.
In its annual Report to the Nations on Occupational Fraud and Abuse, the Association of Certified Fraud Examiners provides meaningful data on known fraud, and the financial impact on economies. While the numbers reported are staggering, with the median loss caused by a scheme at $145,000, and an estimate of total global fraud at $3.7 trillion, there are also practices that can mitigate the exposure and loss.
From the report, those companies that implemented Proactive Data Monitoring and Analysis experienced a reduction in median loss of $108,000 – a 59.7% reduction in comparison to those that did not have a similar practice. Other practices had similarly high effectiveness in reducing total losses, such as employee support programs (55%), management review (51.9%) and code of conduct (50%).
While the report is not specific to financial institutions, and doesn’t account for nearly all the fraud that takes place in the financial institution space, there are good lessons and benchmarking opportunities to be found in the analysis. Click here to access the full report.
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 (Referenced with permission. Copyright ©2014 Association of Certified Fraud Examiners, Inc.)

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The post Fraud: A $3.7 Trillion Global Problem appeared first on Berkley FinSecure.

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