corruption and occupational fraud 34 th annual crime stoppers international conference sep 30 –...

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C o rru p tio n a n d O ccu p a tio n a l F ra u d

34th Annual Crime Stoppers International Conference

Sep 30 – Oct 2, 2013

©2012 Association of Certified Fraud Examiners, Inc. 2

ACFE Occupational Fraud Report 2012

- Association of Certified Fraud Examiners (ACFE) “Report to the Nations 2012”

- 1,388 cases of occupational fraud between Jan 2010 and Dec 2011

- Covers 94 nations

- Occupational fraud: The use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets

©2012 Association of Certified Fraud Examiners, Inc. 3

Survey participants estimated that the typical organization loses an estimated 5% of its annual revenues to occupational fraud.

The Cost of Occupational Fraud

Types of Occupational Fraud

Asset m

isappro

priation

Corruption sc

hemes

Financia

l statement

0%10%20%30%40%50%60%70%80%90%

100%

Frequency

Frequency

Asset m

isappro

priation

Corruption sc

hemes

Financia

l statement

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

Median loss

Median loss

©2012 Association of Certified Fraud Examiners, Inc. 5

Detection of Fraud Schemes

Initial Detection of Occupational Frauds

©2012 Association of Certified Fraud Examiners, Inc. 6

Detection of Fraud Schemes

Source of Tips

©2012 Association of Certified Fraud Examiners, Inc. 7

Victim Organizations

Primary Internal Control Weakness Observed by CFEs

Whistle Blowing

“The audit committee should review arrangements by which staff of the company may, in confidence, raise concerns about possible improprieties in matters of financial reporting or other matters. The audit committee’s objective should be to ensure that arrangements are in place for the proportionate and independent investigation of such matters and for appropriate follow-up action”.

- UK Combined Code on Corporate Governance

Crime Stoppers Integrity Line

Anonymous and confidential service for employees to report criminal activities and acts of wrongdoing in workplace

May report bribery, fraud, corruption, money laundering, embezzlement of funds, sexual harassment, theft of company equipment and materials, use of company equipment for personal gain

1-800-CORRUPT (267-7878)

Calls answered by Integrity Line staff at UK call centre

Info sent to Chairman of Crime Stoppers Barbados and designated person at company and/or police

Prevention of Corruption Act

Prevention of Corruption Commission

Annual declaration of assets, income and liabilities

Declaration by political parties

Code of conduct for public officials

Corruption in the private sector

Solicitation, bribery and other offences

Seizure, freezing and confiscation

Protection of witnesses

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C o rru p tio n a n d O ccu p a tio n a l F ra u d

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