Every second year the Association of Certified Fraud Examiners (ACFE) publishes a report on occupational fraud and abuse (The 2016 ACFE Report to the Nations on Occupational Fraud and Abuse).The report is based on 2 410 fraud cases analyzed by ACFE members from 114 countries. Out of over 2 thousand cases only 8 Polish fraud schemes were analyzed within the report, which does not imply that the actual number of fraudulent activities detected in Poland was limited to this number.
Tips still prevail
Regular readers will not be surprised to learn that 40 percent of cases were detected by a tip. Such a high percent of non-procedure-based notification source clearly suggests that perpetrators are highly skilled in avoiding internal controls and reporting mechanisms and that they were caught thanks to close observation of whistle-blowers. Interestingly, accidental discovery (5.6%) was an equally efficient source of detection as regular account reconciliation carried out deliberately to find out irregularities (5.5%).
The report has shown that tips played a more important role in large enterprises (43.5% of companies employing more than 100 people), which seems reasonable. Tips, however, appeared to be a more efficient source of information in Eastern Europe and Western/Central Asia (47.4%) than in Western Europe (40.9%).
The table below presents the sources of initial detection of occupational fraud compared to previous periods.