The average organization loses more than $9 a day per employee to fraud and abuse, according to a study conducted by the Association of Certified Fraud Examiners (ACFE). Among the study's other findings:
* The average organization loses approximately 6 percent of its total annual revenue to fraud and abuse committed by its own employees.
* Fraud and abuse costs U.S. organizations more than $400 billion annually.
* Small businesses are the most vulnerable.
The ACFE is an international, 25,000-member, professional organization dedicated to fighting fraud and white-collar crime. The organization states that its Report to the Nation on Occupational Fraud and Abuse is the largest known privately-funded study on this subject.
Fraud, Theft and Misconduct:
The ACFE's report looked at the victims and perpetrators of occupational fraud and abuse and made the following discoveries:
* The most costly abuses occurred in organizations with less than 100 employees.
* The typical perpetrator was a college-educated white male.
* Men committed nearly 75 percent of the offenses.
* Men caused four times more losses ($185,000 avg.) than women ($48,000 avg.)
* Managers and executives caused 16 times more losses than non-managerial employees (Owner/executives averaged $1 million, managers $250,000 and non-managerial employees $60,000)
* Employees age 60 and older caused 28 times more losses ($346,000 avg.) than those 25 or younger($12,000) * The education industry experienced the lowest median losses.
* The highest median losses occurred in the real estate financing sector.
Wiliam Desy is an Active Member of the Association of Certified Fraud Examiners.