About the Association of Certified Fraud Examiners and the Report to the Nations on Occupational Fraud and Abuse

Abstract

In 1996, Dr. Joseph T. Wells, CFE, CPA, founder and Chairman of the ACFE, directed the publication of the first Report to the Nation on Occupational Fraud and Abuse. That study was a truly groundbreaking effort. Analyzing actual case in-formation provided by Certified Fraud Examiners, the report presented statistical data on the cost of occupational fraud, the perpetrators, the victims, and the various methods used to commit these crimes. This was the first study of its kind, and the findings in the 1996 report serve as the foundation for much of what we now know about how occupational fraud and abuse affects organizations. It might be hard for some readers to understand or recall just how little we knew about occupational fraud twenty years ago, but until the release of the first report, there was virtually no statistical information available on the cost, frequency, methodology, or any other aspect of occupational fraud. Those who worked in the fraud examination field knew the problem was huge, but no one could say precisely how large, and this made it very difficult to explain to organizations and clients what a tremendous threat they faced. If there is one great contribution the Report to the Nations has made to the anti-fraud community, it has been in helping to raise the general level of awareness about fraud risk. We now live in a world where virtually all business and gov-ernment organizations understand that fraud is a threat they must deal with. That was most certainly not the case in 1996. The challenge of preventing and detecting these crimes is still formidable, but recognizing the threat is the first step, and we are honored to know that information contained in the past eight editions of the report has been used by anti-fraud professionals throughout the world to educate their employers and clients. On behalf of the ACFE, I am proud to present the 2016 edition of the Report to the Nations, our ninth and most exten-sive study to date. I believe the information contained in this report will be of great value to anti-fraud practitioners, business leaders, government officials, academics, the media, and anyone else with an interest in understanding the tremendous economic threat posed by occupational fraud.