iNTerNaTiONaL BusiNess criMe
INTERNATIONAL BUSINESS CRIME The Value of a Fraud Fighter in 2012 Organisations around the world lose an estimated five percent of their annual revenues to fraud, according to the Association of Certified Fraud Examiner’s (ACFE) Report to the Nations on Occupational Fraud & Abuse (‘the Report’). Applied to the estimated 2011 Gross World Product, this figure translates to a potential total global fraud loss of more than $3.5 trillion. These findings, among others, were compiled from a survey of Certified Fraud Examiners (CFEs) who investigated fraud cases between January 2010 and December 2011. According to ACFE President and CEO James D. Ratley, CFE, the latest findings continue to validate statistical trends from previous ACFE reports. “As in previous years, what is perhaps most striking about the data we gathered is how consistent the patterns of fraud are around the globe and over time.” In the introduction to the 2012 Report, Ratley writes: “We believe this consistency reaffirms the value of our research efforts and the reliability of our findings as truly representative of the characteristics of occupational fraudsters and their schemes.” In today’s economic climate, companies are forced to ask themselves, “Who is helping to protect my company and clients from the devastating impact fraud can have?” That is where the ACFE comes in. As the world’s largest antifraud organisation and premier provider of anti-fraud training and education, the ACFE boasts more than 60,000 members worldwide, spanning 150 countries. They represent a global community of individuals from the private and public
22 • Global Business Magazine • November 2012
sectors and in organisations of all sizes. From entry-level fraud examiners to top-level executives – forensic accountants to IT professionals and those transitioning from one line of work to another – all make up the diverse membership of the ACFE. What sets ACFE members apart from the crowd? Through unparalleled live and online training, seminars and educational tools like webinars, publications and newsletters, ACFE members stay at the forefront of fraudfighting trends. Networking opportunities available through ACFE chapters, conferences and seminars, as well as social media, also give members an edge on the latest anti-fraud prevention techniques and education. Equipped with knowledge, tools and connections, members are then able to stay one step ahead of the fraudsters. Many ACFE members hold the distinction of Certified Fraud Examiner (CFE), a credential denoting proven expertise in fraud prevention, detection and deterrence. CFEs around the world are not only trained to identify the warning signs and red flags that indicate fraud but to help protect the global economy, by implementing processes to prevent it from occurring in the first place. It is because of the diligence and contribution of CFEs from all over the world that the data compiled and presented in the Report to the Nations is even possible. In the 2012 study, the ACFE received information on nearly 1,400 cases of occupational fraud, which provided a tremendous data set with which to work. “It is a testament to the dedication of our members