Survey: U.S. Organizations Lose Seven Percent Of Annual Revenue To Fraud

  • Jul 17, 2008

U.S. organizations lose an estimated seven percent of their annual revenues to fraud, according to a survey of Certified Fraud Examiners who investigated cases between January 2006 and February 2008.

The Association of Certified Fraud Examiners (ACFE) published the results of the survey in its 2008 Report to the Nation on Occupational Fraud & Abuse. The benchmarking data is compiled from 959 cases of occupational fraud that were investigated between January 2006 and February 2008. When applied to the projected 2008 United States Gross National Product, the seven percent figure translates to approximately $994 billion in fraud losses.

The Report also found that:

  • Fraud schemes tend to be extremely costly. The median loss caused by the occupational frauds in this study was $175,000. More than one-quarter of frauds involved losses of at least $1 million.
  • Schemes frequently continue for years before they are detected. The typical fraud in our study lasted two years from the time it began until the time it was caught by the victim organization.
  • Frauds were most often committed by the accounting department or upper management, and most fraudsters were first-time offenders. Only seven percent of fraud perpetrators in the study had prior convictions and only 12 percent had been previously terminated by an employer for fraud-related conduct.
  • Occupational frauds are much more likely to be detected by a tip than by audits, controls or other means.
  • Small businesses are especially vulnerable to occupational fraud.
  • Seventy-eight percent of victim organizations modified their anti-fraud controls after discovering that they had been defrauded.

The Report also details findings such as how organizations were impacted based upon industry, how the implementation of anti-fraud controls affected exposure to fraud, and the most common behavioral traits observed among fraud perpetrators.

The Report to the Nation is available for download online at the ACFE’s Web site, www.ACFE.com/RTTN. The Report is in PDF format.

Featured

  • Cloud Security Alliance Brings AI-Assisted Auditing to Cloud Computing

    The Cloud Security Alliance (CSA), the world’s leading organization dedicated to defining standards, certifications, and best practices to help ensure a secure cloud computing environment, today introduced an innovative addition to its suite of Security, Trust, Assurance and Risk (STAR) Registry assessments with the launch of Valid-AI-ted, an AI-powered, automated validation system. The new tool provides an automated quality check of assurance information of STAR Level 1 self-assessments using state-of-the-art LLM technology. Read Now

  • Report: Nearly 1 in 5 Healthcare Leaders Say Cyberattacks Have Impacted Patient Care

    Omega Systems, a provider of managed IT and security services, today released new research that reveals the growing impact of cybersecurity challenges on leading healthcare organizations and patient safety. According to the 2025 Healthcare IT Landscape Report, 19% of healthcare leaders say a cyberattack has already disrupted patient care, and more than half (52%) believe a fatal cyber-related incident is inevitable within the next five years. Read Now

  • AI Is Now the Leading Cybersecurity Concern for Security, IT Leaders

    Arctic Wolf recently published findings from its State of Cybersecurity: 2025 Trends Report, offering insights from a global survey of more than 1,200 senior IT and cybersecurity decision-makers across 15 countries. Conducted by Sapio Research, the report captures the realities, risks, and readiness strategies shaping the modern security landscape. Read Now

  • Analysis of AI Tools Shows 85 Percent Have Been Breached

    AI tools are becoming essential to modern work, but their fast, unmonitored adoption is creating a new kind of security risk. Recent surveys reveal a clear trend – employees are rapidly adopting consumer-facing AI tools without employer approval, IT oversight, or any clear security policies. According to Cybernews Business Digital Index, nearly 90% of analyzed AI tools have been exposed to data breaches, putting businesses at severe risk. Read Now

  • Software Vulnerabilities Surged 61 Percent in 2024, According to New Report

    Action1, a provider of autonomous endpoint management (AEM) solutions, today released its 2025 Software Vulnerability Ratings Report, revealing a 61% year-over-year surge in discovered software vulnerabilities and a 96% spike in exploited vulnerabilities throughout 2024, amid an increasingly aggressive threat landscape. Read Now

Most   Popular

New Products

  • Unified VMS

    AxxonSoft introduces version 2.0 of the Axxon One VMS. The new release features integrations with various physical security systems, making Axxon One a unified VMS. Other enhancements include new AI video analytics and intelligent search functions, hardened cybersecurity, usability and performance improvements, and expanded cloud capabilities

  • Mobile Safe Shield

    Mobile Safe Shield

    SafeWood Designs, Inc., a manufacturer of patented bullet resistant products, is excited to announce the launch of the Mobile Safe Shield. The Mobile Safe Shield is a moveable bullet resistant shield that provides protection in the event of an assailant and supplies cover in the event of an active shooter. With a heavy-duty steel frame, quality castor wheels, and bullet resistant core, the Mobile Safe Shield is a perfect addition to any guard station, security desks, courthouses, police stations, schools, office spaces and more. The Mobile Safe Shield is incredibly customizable. Bullet resistant materials are available in UL 752 Levels 1 through 8 and include glass, white board, tack board, veneer, and plastic laminate. Flexibility in bullet resistant materials allows for the Mobile Safe Shield to blend more with current interior décor for a seamless design aesthetic. Optional custom paint colors are also available for the steel frame.

  • 4K Video Decoder

    3xLOGIC’s VH-DECODER-4K is perfect for use in organizations of all sizes in diverse vertical sectors such as retail, leisure and hospitality, education and commercial premises.