5 Fraud Risk Management Principles & Assessment Strategies
DATADOME, January 25th, 2023
Fraud is moving online. In 2021, when most people were stuck inside because of the pandemic, the Federal Trade Commission (FTC) reported a 70% increase in consumer fraud reports compared to 2020. Consumers lost a total of $5.8 billion to mostly impostor scams and online shopping scams.
But fraudsters don't just target consumers; they frequently target businesses too. In fact, fraudsters have been known to target their own employers. The Association of Certified Fraud Examiners' (ACFE's) 2022 Global Fraud Survey reported that the average business loses about 5% of its revenue to occupational fraud every year. The median cost of each fraud case was $117,000 with some heavy outliers that made the average cost $1,783,000 per fraud case.