Online whistleblowing services are vital for combatting organisational fraud
Organisations lose an average of 5% of annual revenues as a result of fraud. Victim organisations that do not have a corporate whistleblowing channel in place face median losses twice as big as those offering a channel for whistleblowers. Most reports, nearly 60%, were submitted online.
These are the staggering result of this year’s Global Fraud Study released by the Association of Certified Fraud Examiners (ACFE), the largest anti-fraud organisation in the world.
The median loss for all cases in the study was $150,000. Financial statement fraud caused by far the greatest median loss. The most common form of occupational fraud was asset misappropriation, which occurred in more than 80% of all cases. Interestingly the median loss suffered by small organisations (those with fewer than 100 employees) was the same as that incurred by the largest organisations (those with more than 10,000 employees). Organisations of different sizes tend to have different fraud risks. Corruption was more prevalent in larger organisations, while check tampering, skimming, payroll, and cash larceny schemes were twice as common in small organisations as in larger organisations.
When it comes to the detection, the ACFE points out that tip-offs have by far proven to be the most common and effective method of uncovering schemes – 40% of cases were revealed by whistleblowers.
Organisations that had reporting channels in place were much more likely to detect fraud through tips than organisations without a corporate channel in place – approximately 50% compared to 30%, respectively.
Nearly 60% of all tips were submitted through internet, making online reporting the most common reporting channel.
Victim organisations with no corporate whistleblowing channel suffered greater median losses—in fact twice as much.
WhistleB provides a next generation, full-range corporate whistleblowing service, with a global reach.
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