Association of Certified Fraud Examiners
|This article relies on references to primary sources. (February 2008)|
||This article appears to be written like an advertisement. (January 2012)|
|Association of Certified Fraud Examiners|
|Legal status||Professional organization|
|Region served||Worldwide (125 countries)|
|Chairman||Joseph T. Wells|
|President||James D. Ratley|
|Main organ||Board of Regents|
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. The ACFE is the world's largest anti-fraud organization and premier provider of anti-fraud training and education. Together with nearly 70,000 members, the ACFE is reducing business fraud world-wide and inspiring public confidence in the integrity and objectivity within the profession.
Certified Fraud Examiner credential
The Certified Fraud Examiner (CFE) credential denotes proven expertise in fraud prevention, detection and deterrence. CFEs are trained to identify the warning signs and red flags that indicate evidence of fraud and fraud risk. CFEs around the world help protect the global economy by uncovering fraud and implementing processes to prevent fraud from occurring in the first place.
Joseph T. Wells
Joseph T. Wells 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, 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.
Per research conducted by the ACFE in the 2012 Report to the Nations on Occupational Fraud and Abuse:
- Survey participants estimated that the typical organization loses 5% of its revenues to fraud each year. Applied to the estimated 2011 Gross World Product, this figure translates to a potential projected global fraud loss of more than $3.5 trillion.
- The median loss caused by the occupational fraud cases in our study was $140,000. More than one-fifth of these cases caused losses of at least $1 million.
- The frauds reported to us lasted a median of 18 months before being detected.
- Occupational fraud is more likely to be detected by a tip than by any other method. The majority of tips reporting fraud come from employees of the victim organization.
- Occupational fraud is a significant threat to small businesses. The smallest organizations in our study suffered the largest median losses. These organizations typically employ fewer anti-fraud controls than their larger counterparts, which increases their vulnerability to fraud.
- As in our prior research, the industries most commonly victimized in our current study were the banking and financial services, government and public administration, and manufacturing sectors.
- The presence of anti-fraud controls is notably correlated with significant decreases in the cost and duration of occupational fraud schemes. Victim organizations that had implemented any of 16 common anti-fraud controls experienced considerably lower losses and time-to-detection than organizations lacking these controls.
- Nearly half of victim organizations do not recover any losses that they suffer due to fraud. As of the time of our survey, 49% of victims had not recovered any of the perpetrator’s takings; this finding is consistent with our previous research, which indicates that 40–50% of victim organizations do not recover any of their fraud-related losses.
- Perpetrators with higher levels of authority tend to cause much larger losses. The median loss among frauds committed by owner/executives was $573,000, the median loss caused by managers was $180,000 and the median loss caused by employees was $60,000.
- The vast majority (77%) of all frauds in our study were committed by individuals working in one of six departments: accounting, operations, sales, executive/upper management, customer service and purchasing. This distribution was very similar to what we found in our 2010 study.
- Most occupational fraudsters are first-time offenders with clean employment histories. Approximately 87% of occupational fraudsters had never been charged or convicted of a fraud-related offense, and 84% had never been punished or terminated by an employer for fraud-related conduct.
- In 81% of cases, the fraudster displayed one or more behavioral red flags that are often associated with fraudulent conduct. Living beyond means (36% of cases), financial difficulties (27%), unusually close association with vendors or customers (19%) and excessive control issues (18%) were the most commonly observed behavioral warning signs.
- Frankensteins of Fraud, published by the ACFE
- Wells, Joseph T. (2010). I'm a Fraud; You're a Fraud: The Fables, Follies, and Foibles of a Fraud Fighter. Hoboken, NJ: Wiley. p. 376. ISBN 978-0-470-61070-1.