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.

In need of Assistance? Contact Us

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