CFEs' pledge to protect employees


By James D. Ratley, CFE

jim-ratley-80x80.jpgFrom the President and CEO

A CEO is committing fraud. And many of the middle managers and staff members know it. What to do?

Corporate leaders have always faced pressure to tweak the ledgers to make the company goals. Since the Sarbanes-Oxley Act of 2001, organizations have implemented fraud hotlines and whistleblower protection programs to curb C-suite transgressions. However, as Bob Tie writes in our cover article, only when such resources are well-designed, implemented and managed do employees have the confidence to use them.

According to the 2014 ACFE Report to the Nations on Occupational Fraud and Abuse, "Owners/executives accounted for less than one-fifth of all frauds, but the median loss in owner/executive cases was $500,000, approximately four times higher than the median loss caused by managers and nearly seven times that of employees." The median duration of fraud schemes perpetrated by employees was 12 months; by managers, 18 months; and by owners/executives 24 months, according to the report. 



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