By Annie Cortez, Managing Consultant, and Macie Latham, Lead Consultant, Forvis Mazars Be Proactive and Limit Asset Misappropriation Schemes Learn How Your Organization Can Help Protect Against the Risk of Internal Fraud The Association of Certified Fraud Examiners’ (ACFE) 2024 Report to the Nations1 highlights the trends observed in occupational fraud, which includes asset misappropriation, financial statement fraud and corruption. According to the report, the most common scheme is asset misappropriation, defined as “a scheme in which an employee steals or misuses the employing organization’s resources.”1 According to the study, Certified Fraud Examiners (CFEs) estimate that organizations lose 5% of revenue to fraud each year, with the median loss related to asset misappropriation being $120,000, up 20% from the 2022 Report to the Nations.1,2 CFEs estimate that organizations lose 5% of revenue to fraud each year, with the median loss related to asset misappropriation being $120,000, up 20% from the 2022 Report to the Nations. The risk of fraud is ever-present and on the rise. What can your organization do to help protect against the risk of internal fraud? Increase the Likelihood of Identifying Fraud and Reducing the Fraud Scheme’s Duration Even with sophisticated preventive controls, fraud can still occur with the typical scheme lasting 12 months before detection.1 A key strategy to help manage fraud risk is to enact measures to increase the likelihood of early detection, effectively limiting the duration of the scheme. In the study, frauds lasting greater than five years resulted in a median loss of $875,000 and frauds lasting six months or less resulted in a median loss of $30,000. 24 West Virginia Banker
RkJQdWJsaXNoZXIy ODQxMjUw