Top Ways Fraudsters (attempt to) Conceal Evidence of Their Crimes
Organizational fraud (also known as internal organizational fraud or occupational fraud) is when an employee, manager or executive of an organization illegally or inappropriately uses the organization’s resources, assets or property. Not to be confused with external organizational fraud, which is when there is fraud committed against an organization from the outside via third parties such as vendors or customers.
According to the ACFE’s Occupational Fraud 2024: A Report to the Nations, the median losses due to fraud increased 24% compared to the ACFE’s 2022 Report to the Nations, totaling $3.1 billion. Unfortunately, the COVID-19 pandemic may have played a role in the increase in median losses.
Now you may wonder how fraud perpetrators conceal their mischievous ways. Surprisingly, 11% of cases analyzed by the ACFE for their 2024 Report to the Nations, did not involve any concealment. However, that means that 89% of the fraud cases did involve concealment. The top three concealment methods include creating fraudulent physical documents, altering physical documents, and creating fraudulent electronic documents or files. Although we currently live in a digital society, the results show that physical evidence is still pertinent to fraud prevention, detection, and investigation. A break-down of the various types of concealment methods can be seen below.
It is important for organizations to understand these concealment methods to help improve their prevention and detection methods. Fortunately, fraud examiners are equipped with the necessary resources and analyses methods to assist with detecting and investigating fraud. At Ahuja & Consultants, we have a strong, diverse team with exceptional resources dedicated to expose potential fraud, regardless of the fraudsters’ concealment methods. #FraudWeek
Source of Chart: ACFE Occupational Fraud 2024: A Report to the Nations
