Visit the Association of Certified Fraud Examiners Website at cfenet.com. Research the fraud facts (see media center—fraud statistics) presented at this site and fill in the blanks in the fol¬ lowing statements.

1. It is estimated that_% of revenues will be lost in 2002 as a result of occupational fraud and abuse. Applied to the U.S. gross domestic product, this translates to losses of approximately $_billion, or about $_per employee.

2. Organizations with fraud hotlines cut their fraud losses by approximately_% per scheme.

Internal audits, external audits, and background checks also significantly reduce fraud losses.

3. Small businesses are the most vulnerable to occupational fraud and abuse. The average scheme in a small business causes $__ in losses. The average scheme in the largest companies costs

$_.

4. The most common method for detecting occupational fraud is through tips from_, customers, vendors, and anonymous sources. The second most common method of discovery is_.

5. The typical occupational fraud perpetrator is a first-time offender. Only_% of occupational fraudsters in this study were known to have prior convictions for fraud-related offenses.

6. All occupational frauds fall into one of three categories:_, corruption, or_statements.

7. Over_% of occupational frauds involve asset misappropriations. Cash is the targeted asset _% of the time.

8. Corruption schemes account for __% of all occupational frauds, and they cause over $_ in losses, on average.

9. Fraudulent statements are the most costly form of occupational fraud with median losses of

$_million per scheme.

10.Frauds committed by employees cause median losses of $, while frauds committed by managers and executives cause median losses of$_. When managers and employees conspire in a fraud scheme, the median loss rises to $_.

I I. Losses caused by perpetrators older than 60 aretimes higher than losses caused by em¬

ployees 25 and younger.

12. The average fraud scheme lasted_months before it was detected.