Some 5% of a company's annual revenue is lost to occupational fraud.
That fraud is costly goes without saying, but exactly how costly is it? Recently answers to that question have become available. Some 5% of a company's annual revenue is lost to occupational fraud, according to survey results published by the Association of Certified Fraud Examiners in its 2010 Report to the Nations on Occupational Fraud & Abuse. The median loss by all companies is $160,000, although manufacturing fared worse. For manufacturers, corruption was the leading fraud scheme, representing nearly 49% of the cases.
Additional findings from the survey, which covers calendar years 2008 and 2009, show:
median loss to fraud among manufacturers, which ranked it sixth among industries
percentage of total fraud cases represented by manufacturing industries, which ranked it second
total number of fraud cases reported by manufacturers -- the second highest
median loss in the mining industry and the highest median
total number of fraud cases reported by the mining industry and the lowest total