ACFE Report

According to a 2010 report released by the Association of Certified Fraud Examiners (ACFE), a typical organization loses 5% percent of their annual revenue to fraud in some. As a business owner or board member, consideration of how to prevent fraud from occurring could be a worthwhile investment. An external audit can be a fraud deterrent, however the ACFE report suggests that organizations tend to rely on the external audit to heavily. Fraud prevention measures should begin within the organization. Some effective yet cost efficient measures could include, review of bank statements, preparing budgets, perform employee background checks, control the mail and be sensitive to changes in employee behaviors or lifestyle changes. If your organization is a victim of fraud enforce legal action against the individual to send a message to others within your organization.