the fraud tree
occupational fraud and abuse classification system
Click on occupational fraud categories below with the i icon to view definitions and statistical
information from the ACFE’s 2016 Report to the Nations on Occupational Fraud and Abuse.
i
i
Corruption
i
Asset
Misappropriation
Financial
Statement Fraud
Net Worth/
Net Income
Overstatements
Net Worth/
Net Income
Understatements
Invoice
Kickbacks
Timing
Differences
Timing
Differences
Bid Rigging
Fictitious
Revenues
Understated
Revenues
Concealed
Liabilities and
Expenses
Overstated
Liabilities and
Expenses
Improper
Asset
Valuations
Improper
Asset
Valuations
Improper
Disclosures
Improper
Disclosures
Conflicts of
Interest
Bribery
Purchasing
Schemes
Sales
Schemes
Economic
Extortion
Illegal Gratuities
i
Inventory and All
Other Assets
Cash
i
Theft of Cash
on Hand
Theft of Cash
Receipts
i
i
Skimming
Sales
Unrecorded
Understated
Receivables
Write-Off
Schemes
Lapping
Schemes
Unconcealed
Fraudulent
Disbursements
i
Cash Larceny
Refunds
and Other
Billing
Schemes
i
Payroll
Schemes
i
Expense
Reimbursement
Schemes
Misuse
i
Check
Tampering
Register
Disbursements
Asset
Requisitions
and Transfers
False Sales
and Shipping
Ghost
Employee
Mischaracterized
Expenses
Forged Maker
NonAccomplice
Vendor
Falsified
Wages
Overstated
Expenses
Forged
Endorsement
Personal
Purchases
Commission
Schemes
Fictitious
Expenses
Altered Payee
Multiple
Reimbursements
Authorized
Maker
Shell
Company
i
Larceny
False Voids
Purchasing
and Receiving
False Refunds
Unconcealed
Larceny
X
Corruption
A scheme in which an employee misuses his or her influence in a business transaction in a way that violates his or her duty to the employer in order to gain a direct
or indirect benefit.
35+65+D
35.4%
of cases
median loss:
$200,000
X
Asset Misappropriation
A scheme in which an employee steals or misuses the employing organization’s
resources.
84+16+D
83.5%
of cases
median loss:
$125,000
X
Financial Statement Fraud
A scheme in which an employee intentionally causes a misstatement or omission
of material information in the organization’s financial reports.
10+90+D
9.6%
of cases
median loss:
$975,000
X
Theft of Cash on Hand
A scheme in which the perpetrator misappropriates cash kept on hand at the victim
organization’s premises.
12+88+D
11.5%
of cases
median loss:
$25,000
X
Inventory and All Other Assets
A scheme in which an employee steals or misuses non-cash assets of the victim
organization.
19+81+D
19.2%
of cases
median loss:
$70,000
X
Skimming
A scheme in which an incoming payment is stolen from an organization before it is
recorded on the organization’s books and records.
10+90+D
11.9%
of cases
median loss:
$53,000
X
Cash Larceny
A scheme in which an incoming payment is stolen from an organization after it has
been recorded on the organization’s books and records.
8+92+D
8.4%
of cases
median loss:
$90,000
X
Billing Schemes
A scheme in which a person causes his or her employer to issue a payment by
submitting invoices for fictitious goods or services, inflated invoices or invoices for
personal purchases.
22+78+D
22.2%
of cases
median loss:
$100,000
X
Payroll Schemes
A scheme in which an employee causes his or her employer to issue a payment by
making false claims for compensation.
9+91+D
8.5%
of cases
median loss:
$90,000
X
Expense Reimbursement Schemes
A scheme in which an employee makes a claim for reimbursement of fictitious or
inflated business expenses.
14+86+D
14.0%
of cases
median loss:
$40,000
X
Check Tampering
A scheme in which a person steals his or her employer’s funds by intercepting,
forging or altering a check or electronic payment drawn on one of the organization’s bank accounts.
11+89+D
11.4%
of cases
median loss:
$158,000
X
Register Disbursements
A scheme in which an employee makes false entries on a cash register to conceal
the fraudulent removal of cash.
3+97+D
2.7%
of cases
median loss:
$30,000