Forensics Journal - Stevenson University 2014 | Page 45

STEVENSON UNIVERSITY

the construction industry can expect their revenue loss percentage to
be even higher because construction proved to be the industry with
the third highest median loss of $300,000 (“Report to the Nations”).
Unfortunately, the ACFE found that approximately half of the victim
companies they studied did not recover any of the losses they incurred
as a result of the fraud (“Report to the Nations”). Other trends
revealed: small businesses are more at risk than larger ones, high-ranking officials tend to inflict more financial damage on a company than
lower-level employees, and most fraudsters are first-time offenders
with no criminal record (“Report to the Nations”). The Report to the
Nations seeks to educate professionals across the globe and increase
their awareness of various frauds that are perpetrated on the economy.
The ACFE also offers prevention and detection techniques to help
businesses protect themselves. Many of these techniques are especially
useful to combat construction fraud.

cause more than monetary damages. Involvement in bribery schemes
is likely to trigger negative media attention and can have a destructive
impact on a company’s reputation (“Corruption Prevention”). The
adverse publicity can cause loss of customer loyalty, resign