TERRY BIRRELL

CERTIFIED PUBLIC ACCOUNTANT

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Fraud Prevention during a Recession

The “2004 Report to the Nation -Occupational Fraud and Abuse” by The Association of Fraud Examiners was based on occupational fraud and abuse cases that caused over $7 billion in losses.

This study estimates that:

• Organizations lose 6 percent of annual revenue to fraud and abuse.
• Fraud and abuse costs US organizations more than $660 billion annually.
  
• The average organization loses more than $4,500 per annum per employee to fraud and abuse.
• The median loss where there was one perpetrator was $58,500.
• When there was more than one perpetrator, the median loss was $200,000.
  

The Report's conclusions included the following:

• Smaller organizations are the most vulnerable to occupational fraud and abuse.
• Most occupational frauds are ongoing lasting an average of 18 months.
• A lack of understanding of the nature of occupational fraud and abuse adds to its cost.
• Internal controls are a deterrent to occupational fraud.
• The rate of occupational fraud and abuse likely will rise.

Tired of seeing your profits go up in smoke?

Or out the door?

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Copyright 2008. Terry L. Birrell. All rights reserved.