The biannual survey of the Association of Certified Fraud Examiners (ACFE) found that US organizations lose an estimated 7 percent of annual revenues to fraud. Based on corresponding United States GDP figures from the World Bank, this percentage indicates a staggering estimate of losses — around $994 billion — among U.S. organizations, despite increased emphasis on anti-fraud controls and recent legislation to combat fraud. As the survey suggests, almost every large and small organization is potentially susceptible to fraud risk, both internally from employee theft and corruption and externally by vendors and other third parties engaged in fraud against the organization. The recent spate of corporate governance failures further underscores the need to establish strong anti-fraud programs and controls.
Financial Executives International
Ramamoorti, Sridhar and Dupree, Joseph, "Continuous Controls Monitoring Can Help Defer Fraud" (2010). Accounting Faculty Publications. 83.