CHAPTER 7Asia-Pacific Region*

REGIONAL FRAUD TRENDS

The 2018 Report to the Nations on Occupational Fraud and Abuse issued by the Association of Certified Fraud Examiners (ACFE) includes 220 cases from the Asia-Pacific region that were investigated between January 2016 and October 2017. These cases caused a median loss of US $236,000 per case.

As noted in Exhibit 7.1, corruption is the most common form of occupational fraud committed in the Asia-Pacific region; 51% of the cases analyzed involved some form of corruption, which is more than twice as frequent as any other type of fraud scheme. Theft of noncash assets is the second most common category of occupational fraud, occurring in one-quarter of the cases in the region. In addition, fraud schemes in the Asia-Pacific region are almost three times more likely to be detected by a tip than by any other means (see Exhibit 7.2).

Bar graph shows corruption, noncash, expense reimbursements, billing, financial statement fraud, cash on hand, check and payment tampering, cash larceny, skimming, payroll, and register disbursements on vertical line where corruption is highest at 51 percent.

Exhibit 7.1 Scheme Types – Asia-Pacific Region

Bar graph shows tip, internal audit, management review, external audit, other, by accident, document examination, account reconciliation, surveillance/monitoring, notification by law enforcement, IT controls, and confession on vertical line where tip is highest at 47 percent.

Exhibit 7.2 Initial Detection Method – Asia-Pacific Region

The 2018 Report to the Nations also examines the anti-fraud controls that were present at victim organizations at the time the frauds being analyzed were committed. Exhibit 7.3 shows that external ...

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