An effective reporting mechanism is one
of the most important parts of your anti-fraud program.
There is no doubt that fraud costs an organization money.
That’s money that’s not
available for benefits, raises, new equipment, or new employees.
So when people steal from the company,
they are stealing from everyone at the organization.
And studies show that once the money is stolen, the chances of getting the money
back are not good. According to the surveys conducted by the Association of
Certified Fraud Examiners, about half of fraud cases result in no recovery at all,
and the remainder only see a limited recovery of the stolen funds.
That is why it’s important to emphasize that part of EVERYONE’S job responsibility
is to watch for and report suspected fraud.
The ACFE began the Report to the Nations on Occupational Fraud in 1996.