IN TOUCH : Trillion Dollar Fraud

Frauds committed by owners and executives are more than nine times as costly as employee frauds, new worldwide survey has shown. 
Executive-level frauds also took much longer to detect than other instances of fraud, says the Association of Certified Fraud Examiners body, which investigated cases between January 2008 and December 2009. 
Worldwide, companies on average lose an estimated five percent of their annual revenue to fraud, the association says. That equates to up to US$2.9 trillion globally, with nearly one quarter of the frauds involving losses of at least US$1 million.
Information from financial officers in 106 countries was compiled to develop the statistics on occupational fraud losses, detection methods and perpetrators. “Fraud knows no boundaries and anti-fraud professionals worldwide face more challenges than ever in detecting and combating it,” said the group’s president James Ratley. 
The study also showed fraud schemes can continue for months or even years before they are detected. The frauds in the study lasted median of 18 months before being detected. Frauds are much more likely to be detected by tip than by any other means.

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