Fraud-tree - How to imporve the market share of the entity PDF

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How to imporve the market share of the entity...

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the fraud tree occupational fraud and abuse classification system Click on occupational fraud categories below with the i icon to view definitions and statistical information from the ACFE’s 2016 Report to the Nations on Occupational Fraud and Abuse.

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i Asset Misappropriation

Corruption

Financial Statement Fraud

Net Worth/ Net Income Overstatements

Net Worth/ Net Income Understatements

Invoice Kickbacks

Timing Differences

Timing Differences

Bid Rigging

Fictitious Revenues

Understated Revenues

Concealed Liabilities and Expenses

Overstated Liabilities and Expenses

Improper Asset Valuations

Improper Asset Valuations

Improper Disclosures

Improper Disclosures

Conflicts of Interest

Bribery

Purchasing Schemes

Sales Schemes

Economic Extortion

Illegal Gratuities

i Inventory and All Other Assets

Cash

i Theft of Cash on Hand

Theft of Cash Receipts

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i Skimming

Sales

Unrecorded

Understated

Receivables

Write-Off Schemes Lapping Schemes

Unconcealed

Cash Larceny

Refunds and Other

Fraudulent Disbursements

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Billing Schemes

Payroll Schemes

Expense Reimbursement Schemes

Shell Company

Ghost Employee

Mischaracterized Expenses

Misuse

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i Check Tampering

Register Disbursements

Larceny Asset Requisitions and Transfers False Sales and Shipping

Forged Maker

False Voids Purchasing and Receiving

NonAccomplice Vendor

Falsified Wages

Overstated Expenses

Personal Purchases

Commission Schemes

Fictitious Expenses

Altered Payee

Multiple Reimbursements

Authorized Maker

Forged Endorsement

False Refunds Unconcealed Larceny

X

Corruption A scheme in which an employee misuses his or her influence in a business transaction in a way that violates his or her duty to the employer in order to gain a direct or indirect benefit.

35+65+D 35.4%

median loss:

of cases

$200,000

X

Asset Misappropriation A scheme in which an employee steals or misuses the employing organization’s resources.

84+16+D 83.5% of cases

median loss:

$125,000

X

Financial Statement Fraud A scheme in which an employee intentionally causes a misstatement or omission of material information in the organization’s financial reports.

10+90+D 9.6% of cases

median loss:

$975,000

X

Theft of Cash on Hand A scheme in which the perpetrator misappropriates cash kept on hand at the victim organization’s premises.

12+88+D 11.5% of cases

median loss:

$25,000

X

Inventory and All Other Assets A scheme in which an employee steals or misuses non-cash assets of the victim organization.

19+81+D 19.2% of cases

median loss:

$70,000

X

Skimming A scheme in which an incoming payment is stolen from an organization before it is recorded on the organization’s books and records.

10+90+D 11.9% of cases

median loss:

$53,000

X

Cash Larceny A scheme in which an incoming payment is stolen from an organization after it has been recorded on the organization’s books and records.

8+92+D 8.4% of cases

median loss:

$90,000

X

Billing Schemes A scheme in which a person causes his or her employer to issue a payment by submitting invoices for fictitious goods or services, inflated invoices or invoices for personal purchases.

22+78+D 22.2% of cases

median loss:

$100,000

X

Payroll Schemes A scheme in which an employee causes his or her employer to issue a payment by making false claims for compensation.

9+91+D 8.5%

median loss:

of cases

$90,000

X

Expense Reimbursement Schemes A scheme in which an employee makes a claim for reimbursement of fictitious or inflated business expenses.

14+86+D 14.0%

median loss:

of cases

$40,000

X

Check Tampering A scheme in which a person steals his or her employer’s funds by intercepting, forging or altering a check or electronic payment drawn on one of the organization’s bank accounts.

11+89+D 11.4%

median loss:

of cases

$158,000

X

Register Disbursements A scheme in which an employee makes false entries on a cash register to conceal the fraudulent removal of cash.

3+97+D 2.7%

median loss:

of cases

$30,000...