Fraud Investigation
An Estimated $600 Billion In Company Revenue – Or $4,500 Per Employee – were lost in 2002 due to fraud. Fraud and embezzlement workplace investigations are critically important. Using pioneered methods, our experienced fraud investigators will provide you with solutions to this complex problem. Our efforts include the investigation of occupational fraud and various forms of white-collar crime.
For example, over 80 percent of occupational fraud involves asset misappropriations. Cash is the targeted asset 90 percent of the time. In order to protect you, we implement our knowledge of business accounting, banking standards, and auditing methods into our workplace investigations. Coupled with our interviewing skills, we can evaluate complex financial transactions and investigate questionable business activities.
Our occupational fraud investigation services focus on the following three specialized areas that affect most businesses:
- Asset Misappropriation
- Corruption
- Fraudulent Statements
Our experienced financial investigators perform specialized analysis and review of the results of the investigation. They conduct administrative and investigatory interviews with employees and non-employees to resolve any discrepancies or to verify given references. If the situation requires, we will locate and confirm independent sources of information to reach the client's objectives and determine the extent of the problem should one be discovered. We can also implement an undercover workplace investigation if necessary.
Often we liaise with local authorities to provide necessary evidence to seek a conviction and appropriately punish the guilty, while protecting the rights of the victims and securing restitution for your losses and the costs of using outside professional services.
Fraud Related Statistics
The following statistics and those noted above are from the 2002 Report to the Nation . This report, conducted by the Association of Certified Fraud Examiners, provides the most detailed view of how occupational fraud affects organizations in the U.S.
- Organizations with fraud hotlines cut their fraud losses by approximately 50 percent per scheme.
- Small businesses are the most vulnerable to occupational fraud and abuse. The average scheme in a small business causes $127,500 in losses. The average scheme in the largest companies costs $97,000.
- Corruption schemes account for 13 percent of all occupational frauds and cause over $500,000 in losses, on average. At least 30 percent of business losses are the result of dishonest acts by employees.
- Fraud committed by employees result in median losses of $60,000, while fraud committed by managers or executives cause median losses of $250,000. When managers and employees conspire in a fraud scheme, the median loss rises to $500,000.
- Losses caused by perpetrators older than age 60 are 27 times higher than losses caused by employees age 25 and younger.
- The average fraud scheme lasts 18 months before it was detected.