Think a fraud deterrence program is too pricey? Consider this. In its biennial global survey, the Association of Certified Fraud Examiners (ACFE) found that the typical organization loses five percent of its revenues to fraudulent activities each year.
That conclusion was a key finding in the ACFE’s 2014 Report to the Nations, the results of an international survey conducted every two years to study the costs, schemes, perpetrators and victims of fraud.
“Think about what that means,” says David Anderson, principal of David Anderson & Associates, a Philadelphia forensic accounting firm that provides a full range of fraud investigation and fraud deterrence programs in the Delaware Valley. “If you have $1 million in sales each year, you are likely losing $50,000 per year to fraud. At $10 million in sales per year, that adds up to $500,000 lost to fraud each year. And so on and so on.”
The ACFE study also found that the median loss to fraud is $145,000 per incident and that 22 percent of reported incidences involved losses of more than $1 million.
Anderson says organizations sometimes tell him that installing anti-fraud controls and following a comprehensive fraud deterrence program is too expensive or simply not in the budget.
“But given the ACFE’s findings, it is far more likely that failing to install anti-fraud controls is what is too expensive. Businesses, government offices and other organizations really can’t afford not to invest in fraud deterrence,” said Anderson, a Certified Fraud Examiner and an ACFE member.
Anderson encourages every organization to enact strong anti-fraud controls. A comprehensive fraud deterrence program established by a firm that provides forensic accounting services in Philadelphia and the Delaware Valley can help protect your organization from losses caused by fraud. If you have even the slightest suspicion that illicit activity is occurring at your organization, Anderson urges you to contact a Certified Fraud Examiner to conduct a wide-ranging fraud investigation to stem the losses and determine the extent of them.
In the next several weeks, Anderson will share additional highlights from the ACFE’s 2014 study on global fraud. The Association of Certified Fraud Examiners is the world largest anti-fraud organization, dedicated to fighting fraud through its more than 70,000 members in more than 150 countries worldwide.
If you require the services of a Certified Fraud Examiner or any other forensic accounting services in Philadelphia and the Delaware Valley, please contact the Philadelphia forensic accounting firm of David Anderson & Associates by calling David Anderson at 267-207-3597 or emailing him at david@davidandersonassociates.com.
About David Anderson & Associates
David Anderson & Associates is a Philadelphia forensic accounting firm that provides a full range of forensic accounting services in Philadelphia and the Delaware Valley. The experienced professionals at David Anderson & Associates provide forensic accounting, business valuation, fraud investigation, litigation support, economic damage analysis, business consulting and outsourced CFO services. Company principal David Anderson has more than 30 years of experience in financial and operational leadership positions and is a Certified Public Accountant, a Certified Fraud Examiner and a Certified Valuation Analyst.
