The Fraud Examiner Can Help Improve Your Bottom Line
Updated: May 15, 2022
In a recent report by the Association of Certified Fraud Examiners (ACFE) the median loss of those in the construction industry reporting fraud was $203,000, with billing and payroll fraud responsible in 24% of the cases. Billing and payroll frauds were reported to last 18 months on average before discovery.
Overall, 29% of victims sought civil litigation, and another 58% of cases resulted in criminal referral. In the end, victim companies lost several thousands of dollars with 33% reporting a partial recovery, 54% nothing at all, leaving only 13% who were successful in recouping their losses.
Having a Fraud Examiner available to make unscheduled or surprise visits goes a long way in reducing the opportunity for fraud to occur. The appearance of the Fraud Examiner on site not only sets the tone that fraud will not be tolerated but also serves as an opportunity to provide education to your key people on the warning signs of fraud and what to be on the lookout for.