Fraud is continuing to increase this year, in part due to the COVID-19 pandemic, according to a new survey by the Association of Certified Fraud Examiners.
The report found that 79 percent of anti-fraud professionals have seen an increase in the overall level of fraud as of November, compared to 77 percent in August and 68 percent in May. Thirty-eight percent of the respondents said in November the increase has been significant, compared to 34 percent in August and 25 percent in May.
Lena is a startup veteran with demonstrated expertise in propelling business growth for growth-stage fintech companies. In her role as Chief Revenue Officer at leading life insurance technology company Bestow, Lena Chukhno oversees B2B partnership growth for advisor, embedded and enterprise partners. Companies of every size — from startups to public companies — leverage Bestow's software to launch and sell digital life insurance and improve efficiency and profitability by managing the business online.
Prior to joining Bestow, Lena had a combined role as the General Manager of Student Loan Refinancing and Head of Strategy at Earnest, a mission-driven fintech in San Francisco. Under her leadership, Earnest grew to become the market leader in the education financing space.
Previously, she led business development and growth strategy for the Multi-Asset Solutions division at JPMorgan and spent time at McKinsey & Company in management consulting.
A native of Ukraine, Lena earned bachelor's and master's degrees in finance from Kyiv National Economic University, and an MBA from INSEAD.
Amana Lilley, CPA, SHRM-CP, PHR, is a consultant at Rosenberg Associates. She began her career in public accounting working in both audit and tax. She spent over five years working with a variety of clients ranging from real estate partnerships to ultra-high net-worth individuals. In 2019, she pivoted her career to assist the profession as a human resource professional focusing on a wide range of areas including talent management, learning and development and general compliance. Today she works with progressive CPA firm leaders and teams on projects such as partner compensation, partner agreements, workshops, strategic retreat facilitation and HR consulting. She is a graduate of Portland State University.
Cheryl DeMars is the president and CEO of The Alliance.
Cyber fraud, payment fraud (such as schemes with debit and credit cards) and identity theft are the three top fraud schemes seeing increases, according to anti-fraud professionals.
The largest increase in observed fraud was in financial statement fraud, with 7 percent more anti-fraud professionals reported seeing financial statement fraud in November, compared to August. That could be because as companies continue to see their profits drop, they feel more pressure to cook the books.
The survey also found 77 percent of anti-fraud professionals report that investigating and preventing fraud is more challenging now, while 71 percent said detecting fraud is more challenging as a result of the pandemic.
ACFE members anticipate the fraud trend will continue, even as vaccines have begun rolling out this week in the U.S. Ninety percent of the survey respondents expect a further increase in the level of fraud over the next 12 months, with 44 percent predicting the change is likely to be significant.
Nearly half (48 percent) of the organizations polled expect to increase their investments in anti-fraud technology, and 38 percent intend to raise the use of fraud-related consultants or other external resources. Budgets for anti-fraud training and professional development are experiencing a similar increase (according to 37 percent of the organizations polled), but nearly one-quarter (24 percent) anticipate a decrease in this area. The budget component most likely to see decreases is travel for anti-fraud staff, which shouldn’t be surprising given the plunging levels of air travel in general over this past year, with 38 percent of the survey respondents expecting a reduction in funds for travel in the year ahead.
