INVESTIGATIONS

Fraud Investigations

The Association of Fraud Examiners (ACFE) conduct regular global studies on occupational fraud and abuse. The 2020 report examined 2504 cases from 125 countries. There were losses of more than $5 billion (AUD).

The report highlighted:
• Fraud will be undetected within your company for an average of 14 months and causes a loss of $11500 a month

  • You will lose 5% of your revenue to fraud each year
  • The median loss per case is $175, 000 with an average loss of $2,100,000
  • Corruption was the most common scheme across the globe
  • Asset misappropriation schemes were the most common fraud scheme (86%) and least costly with a median loss of $140,000
  • Financial statement fraud schemes were the least common (10%) but they were the most costly with a median loss of $1,330, 000
  • 43% of fraud schemes were detected through a TIP. The majority of the “tips” were from employees with some from external contractors and suppliers
  • Fraud awareness training increased reporting with 56% of tips to formal reporting mechanisms coming from employees trained in what to look for and how to report it compared to 37% from companies without training
  • Training should be provided internally and with suppliers
  • Telephone hotlines and/or emails were used to report the fraud in 33% of the cases

ACCA can assist you by reviewing and/or providing a fraud and corruption policy to deter fraud within your company. 

Experience (and research) indicates fraudulent payments are a major factor in asset misappropriation. These include:

Invoicing (Billing schemes):

  • Shell companies to facilitate false payments
  • Vendors colluding with employees
  • Personal purchases billed against your company

Payroll Schemes

  • Ghost employees
  • Falsified wages including holiday and unjustified benefits
  • Commission schemes

Expense Reimbursement Schemes

  • False (mischaracterised) expenses
  • Overstated expenses
  • Fictitious expenses
  • Multiple expenses

There are also issues with fraud with unrecorded and understated sales. Fraud can occur with false “write-off” schemes, false sales and shipping and procurement practices. 

ACCA can also provide investigation support. Mick Symons is a certified fraud examiner (CFE). He is experienced in investigation fraudulent activities across various companies. He can assist you in detecting fraud within your company.

Contact us for a free survey to help you identify if you are exposed to fraud.

Anti Corruption Consultants Australia (ACCA) offers expertise in a wide variety of investigations. Mick Symons has been involved both as an investigator and a manager of investigations into fraud, corruption, discipline (code of conduct), bullying, sexual harassment and due diligence investigations.

It is important to have someone who understands the legal requirements of the various methods of investigation; someone who understands how evidence should be gathered, stored and presented for the appropriate forum for a decision to be made. Too many investigations result in key evidence being thrown out because of the failure of the investigator to follow simple procedures.

ACCA knows what is required and will provide you with the evidence required to substantiate or disprove any allegation.

In need of Assistance? Contact Us for a free consultation.

Please fill out the form below and we’ll get back to you to schedule a free initial consultation.

FREE Fraud Health Check for Small Businesses

Think you might be the Victim of Fraud? 

Fill out the form below to get sent our free survey that provides you with an indication of the potential vulnerability of your business to fraudulent activities.