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.
? Headquartered in Austin, TX
? 45,000+ members (23,000+ of whom are Certified Fraud Examiners)
? CFEs and ACFE Chapters in over 110 countries
Joseph T. Wells
Joseph T. Wells is perhaps the most famous fraud investigator today. He 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, Mr. 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.
Fraud facts
Per research conducted by the ACFE:
Companies and government entities with fraud hotlines cut their fraud losses by approximately 50% per scheme. While the ACFE advocates fraud hotlines, many individual fraud examiners question the hotline's effectiveness. They note that most calls do not address frauds and/or lack sufficient information to investigate the issue.
Small businesses are the most vulnerable to occupational fraud and abuse. Larger businesses may have an Internal Audit and possibly Anti-Fraud Unit, while smaller companies "trust" their employees. According to the ACFE, the average fraud at a small company nets more money than the average fraud at a large company!
Most frauds are uncovered via tips than any other method. Accidental discovery is the second most common method of detecting fraudulent activity.
The typical occupational fraud perpetrator is a first-time offender who is simply taking advantage of a situation or under extreme pressure. CFE's will talk about a Fraud Scale which includes Opportunity, Pressure, and Personal Integrity. So long as the Opportunity and the Pressure to commit fraud are outweighed by one's Personal Integrity one will not commit a fraud. If, however, an Opportunity occurs or the Pressure mounts that surpasses one's Integrity, a fraud may be committed. For example, a person finds a wallet on the ground with a fifty dollar bill in it. The opportunity for theft is there. A person with high Personal Integrity and no pressing needs will call the wallet's owner and return the money. The same person, however, who is now worrying about how to pay this month's food bill might find the temptation too strong and fail to return the money.
Asset misappropriations, corruption and fraudulent statements are the three types of occupational fraud.
Losses caused by perpetrators older than 60 are 27 times higher than losses caused by employees 25 and younger. This is usually because older employees have obtained a higher level of trust and responsibility within a company. (EG Senior level management versus entry level positions.)
18 months is the typical length of time a fraud is committed before detection.
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