The top four ways organizations initially detect fraud are 42% by tips, 16% by management review, 14% by internal audit and 7% by accident.
Employees are about 40% more likely to report illegal or unethical activity if they can remain anonymous.
Victim organizations that lacked anti-fraud controls suffered greater median losses – in fact twice as much. With Hotline ($100,000 median loss) Without Hotline ($200,000 median loss)
More than 23% of occupational fraud cases resulted in a loss of at least $1 million.
CFES estimate the typical organization loses 5% of annual revenues to fraud.
Key finding after interviewing 5,400 CEO’s, CFOs and CCOs from nearly every major global corporation: Whistleblowers are the most effective source of information in both detecting and rooting out corporate criminal activity.
The phones at . . . hotlines have been ringing in record numbers as the #MeToo social movement spurs victims to reach out for help, sending organizations scrambling to keep up.
Recommended that all organizations implement a whistleblower system for reporting wrongdoing.