Fraud…it’s insidious and pervasive. We have recently reviewed valuable reports that help provide you and your Financial Institution clients with a closer look at the who, what, when, where and cost of fraud.
Part One of this two-part series summarizes some of the highlights of the ACFE fraud report below. Please share this with anyone you think could benefit and contact us
so we can help you and your Financial Institution clients mitigate losses when fraud occurs.
In its annual Report to the Nations on Occupational Fraud and Abuse
, the Association of Certified Fraud Examiners provides meaningful data on known fraud, and the financial impact on economies. While the numbers reported are staggering, with the median loss caused by a scheme at $145,000, and an estimate of total global fraud at $3.7 trillion, there are also practices that can mitigate the exposure and loss.
From the report, those companies that implemented Proactive Data Monitoring and Analysis experienced a reduction in median loss of $108,000 – a 59.7% reduction in comparison to those that did not have a similar practice. Other practices had similarly high effectiveness in reducing total losses, such as employee support programs (55%), management review (51.9%) and code of conduct (50%).
While the report is not specific to Financial Institutions, and doesn’t account for nearly all the fraud that takes place in the Financial Institution space, there are good lessons and benchmarking opportunities to be found in the analysis. Click here
to access the full report.
Make sure your clients are protected
For those times when loss does occur, make sure your clients have a specific, reliable and encompassing insurance solution. Contact anyone of us listed below so that we can help deliver the results you need for your clients!
Contact Us Today!
VP Sales and Distribution
Jon Martin 410-372-6325
Jeanne Shrum 207-415-4587
Mid-Atlantic and South Regions
Dave Cassel 443-987-8619
Southeast Coastal Region
Bill Groves 804-836-0993
Chuck Cook 913-553-8559
Scott Harris 512-800-5393
Experts focused on your protection.
(Referenced with permission. Copyright ©2014 Association of Certified Fraud Examiners, Inc.)
Products and services are provided by one or more insurance company subsidiaries of W. R. Berkley Corporation. Not all products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued. Certain coverages may be provided through surplus lines insurance company subsidiaries of W. R. Berkley Corporation through licensed surplus lines brokers. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds.
For additional information concerning W.R. Berkley Corporation’s insurance company subsidiaries, please visit: http://wrbc.info/Licensing/License.htm