How moral flexibility constrains our moral compass
Cheating, Corruption, and Concealment
More than 15 years ago, the ACFE's founder and Chairman, Dr. Joseph T. Wells, CFE, CPA, conceptualized a groundbreaking research project to study the costs, methodologies and perpetrators of fraud within organizations. The result was the 1996 publication of the ACFE's first Report to the Nation on Occupational Fraud and Abuse. Since then, we have released six additional Reports that have each expanded our knowledge and understanding of the tremendous financial impact occupational fraud and
... has on businesses and organizations. We are proud to say that the information contained in the original Report and its successors has become the most authoritative and widely quoted body of research on occupational fraud. The data presented in our 2012 Report is based on 1,388 cases of occupational fraud that were reported by the Certified Fraud Examiners (CFEs) who investigated them. These offenses occurred in nearly 100 countries on six continents, offering readers a view into the global nature of occupational fraud. As in previous years, what is perhaps most striking about the data we gathered is how consistent the patterns of fraud are around the globe and over time. We believe this consistency reaffirms the value of our research efforts and the reliability of our findings as truly representative of the characteristics of occupational fraudsters and their schemes. On behalf of the ACFE, and in honor of its founder, Dr. Wells, I am pleased to present the 2012 Report to the Nations on Occupational Fraud and Abuse. It is my hope that practitioners, business and government organizations, academics, the media and the general public throughout the world will find the information contained in this Report of value in their efforts to prevent, detect or simply understand the global economic impact of occupational fraud. James D. Ratley, CFE President and CEO Association of Certified Fraud Examiners Letter from the President & CEO 2012 REPORT TO THE NATIONS on occupational FRAUD and abuse | 4 Executive Summary More than one-fifth of frauds in our study caused at least $1 million in losses.