Last week was the Association of Fraud Examiners’ (ACFE) Fraud Awareness Week. We thought that it would be fitting for us to conclude our series of articles in relation to International Fraud Awareness Week with an article relating to the results of their 2012 Fraud and Corruption survey.
What could you buy with $3.5 trillion?
At the end of 2012, the ACFE released the findings of a fraud and corruption survey from approximately 1 400 respondents in 100 countries (appropriately captioned 2012 Report to the Nations) with the basic message being that fraud in the world today has reached seismic proportions. The foreword to the results of the survey records that the ACFE estimates that the annual loss to fraud and corruption in the world today sits at around $3.5 trillion. They are quick to qualify this by saying that this estimate was based on nothing more than the results of their survey which recorded that enterprises lose an estimated 5% of revenue to fraud per annum and that the estimated Gross World Product in 2011 was $70.28 trillion. It is clear that the ACFE has used poetic license to highlight the magnitude of fraud, but even if it is a fraction of this amount, it is still an amount that should be taken seriously by all companies.
Companies should take heed of some of the most important findings from the survey, and take measures to counter fraud and corruption. The more surprising findings are detailed below.
If you have any questions or require a more detailed discussion, contact Bruce Thornton (Associate Director, Risk Advisory, Forensic at Deloitte & Touche) at email@example.com