According to the document, internal fraud costs the average company about 5% of annual profits. While embezzlement is the most well-known form of internal fraud, it is not the most common. The document also states that 33% of businesses that fail or go bankrupt do so because of fraud, and 43% of private companies have reported experiences with fraud in their organization. Some examples of workplace fraud mentioned include a bookkeeper falsifying books to cover taking money, employees stealing inventory or products, and an accounts payable clerk taking a cut of payments.

1. Surprising Facts You Didn’t Know
About Internal Fraud

2. Did You Know…?
The average company loses about 5% of annualprofits to
employeetheft.
Embezzlementis the most well-knownform of internalfraud,
but not the most practiced.

3. SomeInteresting Fraud Statistics
33% of all businesses thatfailor go bankrupt do so because of
fraud.
43% of private companies have reported fraud experiences in
theirorganization.
0%
10%
20%
30%
40%
50%
Go bankrupt Fraud Exper.

4. What is Fraud, Though?
The dictionary definesfraud as “a deliberate action by an
individual or entity to cheatanother, causing damage”.
Fraud, in this instance,referstotheftor
unlawfultakingofcompany resources,
includingmoney.

5. Workplace Fraud Examples
• A bookkeeper falsifiesthebooks to cover their taking of
company money
•Employeesstealcompanyinventory or
products
• An accounts payable clerk takes a cut when accepting
payments

6. The NumbersDon’t Lie
49% of organizations subjected to fraud do NOT recover their
losses
It takes an average of 18 months to detect fraud ina business
25% of cases involve losses over $1
million

7. Types of Fraud
Asset Misappropriation: Misuse or theftof company assets,
both tangibleand not.
Corruption: Bribery, etc.
FinancialStatementFraud: Someonefalsifies records to cover
stealingcash.

8. Did You Know…
Tips are the #1 source of detectionin most fraud cases.
Planningaheadwith certifiedfraud examiners can save your
business timeand money

9. Your source for business consulting,includingcertified fraud
examinationservices.
www.cbs-cbs.com/
www.facebook.com/CorporateBusinessSolutions
www.youtube.com/user/cbsadvisers