The types, costs, prevention and detection ofoccupational fraud: The ACFE perspective

Occupational fraud and abuse are an enormous problem, imposing adverse effects and practically affecting every organization and all sectors of the economy.The estimated global cost of fraud according to ACFE accounted for $2.9, $3.5 and $3.7 trillion in 2010, 2012 and 2014 respectively. Three types of schemes have been identified by the Association of Certified Fraud Examiners (ACFE) in their various reports to the nation.The aim of this review is to depict the type, cost, and fraud control mechanisms. Occupational fraud schemes are very hard to detected. However, they are more likely to be detected by a tip than internal audits, internal controls or external audits. Thus, prevention of occupation fraud is better achieved through the use of hotlines, whistle blowing, effective internal control system and the use of forensic accounting in fraud detection is recommended for further studies.