Fraud Prevention and Forensic Investigation

Internal fraud investigation can be difficult and expensive. The most effective organizational investments are the ones which prevent fraud from occurring in the first place. If fraud prevention is an option, FSI can help through an assessment of existing fraud risks and the implementation of fraud prevention management controls. If a fraud has already occurred, our Certified Fraud Examiners (CFE’s) can assist with a forensic investigation, proof of loss, and possibly the recovery of misappropriated assets.

Facts about Fraud Prevention and Forensic Investigation

Source:  2014 ACFE Report to the Nation (http://www.acfe.com/rttn.aspx)

The typical business organization loses 5% of its revenues each year to fraud.

Fraud Prevention and Forensic Investigation - Global Impact of Fraud

If applied to the 2013 estimated Gross World Prod­uct, this translates to a potential global fraud loss of nearly $3.7 trillion.

Tips are consistently and by far the most common method fraud detection and discovery.  Over 40% of all fraud cases were detected by a tip — more than twice the rate of any other detection method.  Employees accounted for nearly half of all tips that led to the fraud discovery.

Generally, the higher the perpetrator’s level of authority, the greater the fraud losses. 

Fraud Prevention and Forensic Investigation - Loss by level of authority

Collusion helps employees evade independent checks and other anti-fraud controls, enabling them to steal larger amounts. The median fraud loss  rises dramatically as the number of perpetrators increases.

Fraud prevention and forensic investigation - Collusion

The smallest organizations tend to suffer disproportionately large fraud losses. 

Fraud Prevention and Forensic Investigation - Risk by size of organization

Additionally, the specific fraud risks faced by small businesses differ from those faced by larger organizations, with certain categories of fraud being much more prominent at small entities than at their larger counterparts.

The median loss caused by fraud in 2013 was

$145,000

Additionally, 22% of the cases involved losses of at least $1 million.

FSI Principals have experience in a variety of engagements

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Corporate and business fraud investigations

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Special investigations related to securities litigation

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Review and development of fraud policies and procedures

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Misappropriation and diversion of assets

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Fraudulent financial reporting

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Recovery of Electronic Data files

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Asset searches and recoupment

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Business insurance claims

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Cash Skimming Analyses

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Design and implementation of internal and operational controls

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Federal sentencing guidelines

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Healthcare and nursing home fraud

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Financial institution fraud, including money-laundering and check-kiting

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Analytical and forensic analyses

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Design and review of prevention and detection controls

Download Fraud Prevention and Forensic Investigation Information Sheet

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