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Monday, 28 November 2022

Fraud In Sub-Saharan Africa

Copyright © 2022 PJ Stassen
All Rights Reserved



STATISTICS: INCIDENCES OF FRAUD. According to the ACFE (‘Association of Certified Fraud Examiners’) ‘Report on the Nations: 2020 Global Study on Occupational Fraud & Abuse: Sub-Saharan Africa Edition’ the most common fraud schemes in general are as follows:

Corruption 56%; Billing 19%; Non Cash 18%; Cash On Hand 14%; Skimming 13%; Expense Reimbursement 11%; Cash Larceny 11%; Financial Statement Fraud 11%; Cheque & Payment Tampering 8%; Register Disbursement 3%.


▋STATISTICS: GOVERNMENT FRAUD.

Corruption 51%; Billing 19%; Non Cash 18%; Billing 18%; Expense Reimbursement 14%; Payroll 14%; Cash On Hand 9%; Skimming 9%; Financial Statement Fraud 7%; Cheque & Payment Tampering 5%; Cash Larceny 5%; Register Disbursement <1%.


▋BEHAVIOURAL RED FLAGS. According to the ACFE 85% of all fraudsters have displayed at least one of the behavioural red flags (key warning signs) below while committing their crimes:

- Living beyond means 42%

- Financial difficulties 26%

- Unusually close association with vendor, customer 19%

- Control issues, unwillingness to share duties 15%

- Irritability, suspiciousness or defensiveness 13%

- ‘Wheeler-dealer’ attitude 13%

- Divorce, family problems 12%.


▋JOB PERFORMANCE AS A WARNING SIGN.

- Poor Performance Evaluation 13%

- Excessive absenteeism 13%

- Fear of job loss 12%

- Excessive tardiness 12%

- Denied raise or promotion 10%

Etc.


▋HOW FRAUD IS CONCEALED.

- Created fraudulent physical documents 40%;

- Altered physical documents 36%;

- Altered electronic documents or files 27%;

- Created fraudulent documents or files 26%.


Acknowledgments

ACFE (2020) ‘Report On The Nations: 2020 Global Study On Occupational Fraud & Abuse’. Online https://www.acfe.com/report-to-the-nations/2020/

[Download full Report in pdf. 13MB).

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