In this episode, I visit with John Warren, Vice President and General Counsel at Association of Certified Fraud Examiners and Andi McNeal, Director of Research at ACFE. our topic is the ACFE 2018 Report to the Nations. Some of the topics we discuss in this podcast are the following:

  • What is the Report to the Nations?
  • How long has ACFE been producing it?
  • Have the trends been consistent over the past 10 years?
  • Owners/execs account for small percentage of losses but have a median loss of $850K;
  • Corruption was the most common scheme in every global region;
  • Median losses are far greater when fraudsters collude;
  • Data monitoring/analysis and surprise audits were correlated with the largest reduction in fraud loss, what does that mean for detection and prevention?
  • Considerations from the Corruption Section in the Report;
  • What were the top red flags in corruption cases? Do these differ from other types of fraud?
  • What are the industries or business sectors with highest proportion of corruption cases?
  • One of the most significant set of findings seems to be the behavioral aspects of fraud. Do those same aspects appear in corruption cases? If so, can more traditional behavioral risk detection or prevention techniques be brought to the structural solutions used to fight corruption?

The ACFE report to the Nations is an excellent reference tool for all compliance practitioner to show where fraudsters explode weak points.  It also has important data around corruption and from this information you can make your compliance program more robust around these areas which can be exploited.

To download a copy of the Report to the Nations, click here.