EVALUATION OF OCCUPATIONAL ANTI-FRAUD CYCLE:TIPS, PARAMETERS AND ENHANCEMENTS OF INDUSTRIAL AND TELECOMMUNICATION SECTORS FRAUD MANAGEMENT

Abstract

Purpose
The purpose of this paper is to analyze the average costs and rates of fraud. It investigates the usability of greater use of more accurate measurement which if monitored and repeated can secure minimizations which could amount to a new market advantage, in this paper we aim to describe the characteristics of perpetrators of occupational fraud and their effects on organizations.
Design/methodology/approach
This paper has analyzed 420 fraud risk measurement exercises from 25 countries in a range of different sectors. The study is based on a telecommunication analysis fraud survey conducted by the Association of Certified Fraud Examiners (ACFE) using a multivariate regression analysis to explain the effect of perpetrators’ characteristics on fraud losses. Eliminating those which doesn’t assess a statistically valid sample which indicates the presence of fraud, error or correctness in each case within that sample; have been completed and reported; have been externally validated and have a measurable level of accuracy were included. Gathering the percentage loss rate (PLR) and the fraud frequency rate (FFR) and analyze these values using Excel to determine average rates and further comparable data.
Findings
Fraud and error losses in an organization should currently be expected to be at least 2.74 per cent, probably more than 4.94 per cent and possibly more than 9 per cent. The PLR when first measured has been found to be 5.22 per cent and 4.65 per cent when last measured. Only the perpetrator’s position and collusion are statistically significant when controlling for the potential correlation among explanatory factors.