fraudWhen you first suspect fraud has occurred within your organisations it can often result in both a sense of surprise as well as shock.

Then upon further investigation you establish that the fraud has occurred what do you do?

In the blog posted last week titled Fraud in Clubs some interesting figures were included relating to fraud that came from a report prepared by the accounting firm BDO titled:  Not-For-Profit Fraud Survey 2012 Clubs Sectors.

Some additional statistics from that report that relate to how organisations dealt with fraud once it was detected include:

  • 39% of organisations that suffered fraud reported the matter to Police
  • 29% did not report the matter because they were of the opinion it was immaterial
  • 24% did not report the fraud to Police for fear of loss of reputation
  • 86% of organisations who detected the fraud investigated it internally
  • 79% of respondents who had suffered the fraud terminated the employment of the person who committed the fraud.
  • In 64% of the cases none of the loss was recovered by the organisation

What these statistics tell us is that there were a number of different methods and reasons for the different approaches that were undertaken to address the fraud once it was detected. The next post discusses these points in more detail.