Association of Certified Fraud Examiners
Encyclopedia
Established in 1988 the Association of Certified Fraud Examiners is the professional organization that governs professional fraud
examiners. Its activities include producing fraud information, tools and training. It also governs the professional designation of Certified Fraud Examiner
. The ACFE is the world's largest anti-fraud organization and premier provider of anti-fraud training and education. Together with more than 55,000 members, the ACFE is reducing business fraud world-wide and inspiring public confidence in the integrity and objectivity within the profession.
In addition to his duties as chairman, Wells writes, researches, and lectures to business and professional groups on white-collar crime
issues. He has written numerous books and articles on Fraud Prevention and Detection. His writings regularly appear in various professional journals.
The frauds lasted a median of 18 months before being detected.
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
examiners. Its activities include producing fraud information, tools and training. It also governs the professional designation of Certified Fraud Examiner
Certified Fraud Examiner
The Certified Fraud Examiner is a credential awarded by the Association of Certified Fraud Examiners . The ACFE association is the world's largest anti-fraud organization and premier provider of anti-fraud training and education...
. The ACFE is the world's largest anti-fraud organization and premier provider of anti-fraud training and education. Together with more than 55,000 members, the ACFE is reducing business fraud world-wide and inspiring public confidence in the integrity and objectivity within the profession.
Certified Fraud Examiner credential
The Certified Fraud Examiner (CFE) credential denotes proven expertise in fraud prevention, detection and deterrence. CFEs are trained to identify the warning signs and red flags that indicate evidence of fraud and fraud risk. CFEs around the world help protect the global economy by uncovering fraud and implementing processes to prevent fraud from occurring in the first place.Joseph T. Wells
Joseph T. Wells founded the ACFE and currently sits as its chairman. After graduating from the University of Oklahoma, he served for ten years with the FBI, during which time he investigated Watergate.In addition to his duties as chairman, Wells writes, researches, and lectures to business and professional groups on white-collar crime
White-collar crime
Within the field of criminology, white-collar crime has been defined by Edwin Sutherland as "a crime committed by a person of respectability and high social status in the course of his occupation" . Sutherland was a proponent of Symbolic Interactionism, and believed that criminal behavior was...
issues. He has written numerous books and articles on Fraud Prevention and Detection. His writings regularly appear in various professional journals.
Fraud facts
Per research conducted by the ACFE in the 2010 Report to the Nations on Occupational Fraud and Abuse:- Survey participants estimated that the typical organization loses 5% of its annual revenue to fraud. Applied to the estimated 2009 Gross World Product, this figure translates to a potential global fraud loss of more than $2.9 trillion.
- The median loss caused by the occupational fraud cases in our study was $160,000. Nearly one-quarter of the frauds involved losses of at least $1 million.
- Small organizations are disproportionately victimized by occupational fraud. These organizations are typically lacking in anti-fraud controls compared to their larger counterparts, which makes them particularly vulnerable to fraud.
The frauds lasted a median of 18 months before being detected.
- Occupational frauds are much more likely to be detected by tip than by any other means. This finding has been consistent since 2002 when we began tracking data on fraud detection methods.
- Anti-fraud controls appear to help reduce the cost and duration of occupational fraud schemes. We looked at the effect of 15 common controls on the median loss and duration of the frauds. Victim organizations that had these controls in place had significantly lower losses and time-to-detection than those organizations without the controls.
- High-level perpetrators cause the greatest damage to their organizations. Frauds committed by owners/executives were more than three times as costly as frauds committed by managers, and more than nine times as costly as employee frauds. Executive-level frauds also took much longer to detect.
- More than 80% of the frauds in our study were committed by individuals in one of six departments: accounting, operations, sales, executive/upper management, customer service or purchasing.
- More than 85% of fraudsters in our study had never been previously charged or convicted for a fraud-related offense. This finding is consistent with our prior studies.
- Fraud perpetrators often display warning signs that they are engaging in illicit activity. The most common behavioral red flags displayed by the perpetrators in our study were living beyond their means (43% of cases) and experiencing financial difficulties (36% of cases).