An analysis of the victims of occupational fraud: a Canadian perspective
| Published date | 02 January 2009 |
| Date | 02 January 2009 |
| DOI | https://doi.org/10.1108/13590790910924966 |
| Pages | 60-66 |
| Author | Dominic Peltier‐Rivest |
| Subject Matter | Accounting & finance |
An analysis of the victims
of occupational fraud:
a Canadian perspective
Dominic Peltier-Rivest
Department of Accountancy, John Molson School of Business,
Concordia University, Montre
´al, Canada
Abstract
Purpose – This paper aims to describe and explain characteristics of organizations that are victims
of occupational fraud.
Design/methodology/approach – This study is based on a 2006 occupational fraud web survey
conducted in Canada by the Association of Certified Fraud Examiners (ACFE).
Findings – The analysis shows that occupational fraud losses are quite large, accounting for a
median loss of C$187,500 and a mean loss of C$1,142,494. These losses represent, respectively, 0.3
percent (median) and 9 percent (mean) of the victim organization’s annual sales. Private companies,
not-for-profit organizations and small businesses are particularly vulnerable to relatively larger fraud
losses. It is also shown that the smaller the organization the more likely fraud losses will be relatively
larger.
Research limitations/implications – This study contributes to academia by measuring the
statistical significance of the cost of occupational fraud per various organizational characteristics.
Practical implications – This study is useful to regulatory agencies and anti-fraud professionals
because it provides information about what types of organizations are more vulnerable to fraud, thus
indicating where prevention and detection efforts should be directed.
Originality/value – This paper is based on proprietary data owned by the ACFE and is the first to
analyze the statistical significance of the consequences (cost) of occupational fraud in Canada.
Keywords Fraud, Canada, Corporatefinances, Regulation
Paper type Research paper
Introduction
Most industrialized countries have experienced a flurry of occupational fr aud cases
lately, including the Enron, WorldCom, Societe Generale, and the Parmalat frauds, just
to name a few. Occupational fraud may be defined as “the use of one’s occupation for
personal enrichment through the deliberate misuse or misapplication of the employing
organization’s resources or assets” (ACFE and Peltier-Rivest, 2007). Any fraud
committed by an employee, a manager or executive, or by the owner of an organizati on
where the victim is the organization itself may be considered “occupational fraud”
(sometimes called “internal fraud”).
This study describes and explains characteristics of organizations that are victims
of occupational fraud. It contributes to regulatory agencies, anti-fraud professionals,
and academics by describing what types of organizations are more vulnerable to fraud,
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1359-0790.htm
The author would like to thank the Government of Que
´bec (Fonds de recherche sur la socie
´te
´et la
culture – FQRSC) for its financial support and the Association of Certified Fraud Examiners
(ACFE) for providing the data.
JFC
16,1
60
Journal of Financial Crime
Vol. 16 No. 1, 2009
pp. 60-66
qEmerald Group Publishing Limited
1359-0790
DOI 10.1108/13590790910924966
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