• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • File a Report
  • Check Report
  • Client Login

Red Flag Reporting

Protecting Organizations & Their People

  • Home
  • About RFR
    • Our Team and Expertise
    • Who Do We Help?
    • Published Articles
  • Services
    • Hotline Service
    • Compliance Services
  • Benefits
    • Protect Employees
    • Protect Your Reputation
    • Protect Your Bottom Line
    • Manage Cases with Ease
  • Blog
  • Get Started
    • FAQ
    • Request a Demo or Quote
  • Contact Us

April 13, 2016

U.S. Organizations Missing Critical Anti-Fraud Tool

Share on LinkedIn Share
Share on Facebook Share
Share on TwitterTweet

The Association of Certified Fraud Examiners has issued its latest “Report to the Nations.”  Recognized as the most comprehensive anti-fraud study, this report is issued every two years.

 

Critical takeaways:

  • Typical organization’s estimated annual loss to fraud: 5% of revenue
  • Median losses to fraud: $150,000; 23.2% of cases exceed $1,000,000 in losses
  • Frauds typically occur for 18 months before being detected.

 

Importance of hotlines:

Tips are the most common method for detecting frauds (39.1% of cases)

  • 47.3% for those with hotlines.
  • 28.2% for those without hotlines.
Median loss per detected occurrence is $150,000
  • $100,000 with a hotline
  • $200,000 without a hotline

 

The opportunity:

In spite of publications from organizations as diverse and respected as Harvard Law School, the American Institute of Certified Public Accountants, the Society for Human Resource Management and the Association of Certified Fraud Examiners, all identifying hotlines as an important best practice, U.S. organizations lag behind the rest of the world in their implementation.  In fact, consider this:

Regions where hotlines are utilized at higher rates than the United States:

Asia-Pacific

Eastern Europe

Latin America

Middle East

Northern Africa

Southern Asia

Sub-Saharan Africa

Western Europe

In fact, only Canada has a lower implementation rate.

 

Can you afford to ignore this best practice?

Of course, your hotline will not only catch a fraud on average $100,000 sooner (with one report offsetting the cost of the hotline for many decades for many organizations), it will also deter problems from occurring while providing a strong affirmative defense when problems do occur.

Make a wise choice and contact us for your no hassle quote – http://www.redflagreporting.com/contact-us/ .

Looking for an independent fraud hotline service provider?  We can help!

Share on LinkedIn Share
Share on Facebook Share
Share on TwitterTweet

Filed Under: Fraud Prevention

We are Red Flag Reporting

We offer ethics, safety and fraud hotline / case management solutions to our clients via the web, over the phone and through other methods. Trusted by organizations large and small in 50 countries, we can help you!

We are an Ethics Hotline Service Provider
Find Out More  Get a Quote

Primary Sidebar

Hotline and Web Portal

We are an Ethics Hotline Service Provider

Get a Quote

We offer ethics, safety and fraud hotline / case management solutions to our clients via the web, over the phone and through other methods. Trusted by organizations large and small in 50 countries, we can help you!

OSHA Publishes Interim Final Rule for Addressing Criminal Antitrust Anti-Retaliation Complaints

The interim final rule, which became effective on …

[Read Article...] about OSHA Publishes Interim Final Rule for Addressing Criminal Antitrust Anti-Retaliation Complaints

Mastering the Zoom Apology

Note: This article is provided by fellow Akros …

[Read Article...] about Mastering the Zoom Apology

Watch Out for AI-Assisted Fraud

Artificial Intelligence (AI) is a type of …

[Read Article...] about Watch Out for AI-Assisted Fraud

Footer

Follow Along

  • Facebook
  • LinkedIn
  • Twitter

Red Flag Reporting

Red Flag Reporting provides compliance and ethics hotline services and case management software solutions to organizations seeking to promote safe and ethical behavior.

Reach Us

Red Flag Reporting
P.O. Box 4230, Akron, Ohio 44321
Contact Us

(Sales Office only – not a reporting line)
Tel: 877-676-6551
Fax: 330-572-8146

NOTE: Red Flag Reporting services are available for purchase by organizations only. We do not sell or provide our services to individual people.

  

 

Copyright © 2023 Red Flag Reporting all rights reserved. All other trademarks and copyrights are the property of their respective holders.

  • Red Flag Reporting – Ethics, Fraud and Whistleblower Hotline Service
  • Contact Us
  • Privacy Policy