Tips are the most common initial detection method for discovering fraud in an organization.
According to The 2018 Report to the Nations, tips rank first at 40%, internal audits rank second at 15%, and management review is last at 13% for finding fraud.
What’s even more interesting is that employees provide over half of tips. But don’t discount outside tips as a source of information. Outside parties also report nearly a third of all fraud.
If an organization has a hotline, the number of cases detected by a tip is even larger at 46%.
We find this global study on occupational and fraud abuse valuable. As financial investigators, we love it when we find no evidence, but in this case we did.