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.
According to 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%).
Perhaps the most telling of the results from the study, “It takes time and effort to recover the money stolen by perpetrators, and many organizations are never able to fully do so. At the time of our survey, 58% of the victim organizations had not recovered any of their losses due to fraud, and only 14% had made a full recovery.”
Click here to access the full report.
Don’t let your clients fall short of recovering from losses when they do occur, contact of the crime insurance experts at Berkley Crime listed below. We can help you take a bite out of crime-related losses.
Contact Berkley Crime:
National Practice Leader and East Regional Manager
Sean Missal (860) 466-7377
Patricia Logan (212) 497-3708
Matt McNamara (212) 497-3707
Mid-West Regional Manager
Michael Beranek (501) 707-6548
Kyna Love (312) 705-1132
West Regional Manager
Jennifer Maggi (925) 472-8217
Steve Nguyen (925) 472-8233
Experts focused on your protection.
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