Report Details Asia-Pacific Fraud Trends in the Workplace

AUSTIN, Texas, United States – The median fraud loss for organisations in Asia is about $300,000 USD – significantly higher than the global median loss of $160,000, according to a survey of Certified Fraud Examiners (CFEs) who investigated cases between January 2008 and December 2009.

Corruption was the most commonly reported scheme, appearing in more than half of the Asia-Pacific fraud cases in the study. Survey respondents also estimate that the typical organization loses 5 percent of its annual revenue to fraud, which is consistent with the study’s worldwide estimate.

The Association of Certified Fraud Examiners (ACFE) recently published Asia-Pacific findings from its global survey in the 2010 Report to the Nations on Occupational Fraud & Abuse, Asia-Pacific Edition. The new Report breaks down data gathered from 338 fraud cases in Asia-Pacific countries, providing benchmarking statistics on occupational fraud losses, detection methods and perpetrators.

Key findings from the 84-page Report include:

· Asset misappropriation is the most common type of occupational fraud. Asset misappropriations occurred in 80 percent of all cases. Financial statement fraud was the most expensive category, causing a median loss of $4.3 million. This is consistent with the ACFE’s worldwide figures.

· Fraud committed from the top of an organisation is the most damaging. Occupational frauds committed by owners/executives caused a median loss of $1 million. Losses caused by managers and employees were $242,000 and $200,000, respectively.

· Most offenders have no criminal record. Approximately 85 percent of fraud perpetrators had never been charged with, or convicted of, a prior criminal offense.

· Surprise audits and tips are leading methods of reducing losses. The anti-fraud controls that had the greatest impact on occupational fraud losses were surprise audits and hotlines. Both controls were associated with a loss reduction of more than 40 percent.