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.
Jessica Jones-Langford is the group accounting manager at Ximplifi, where she leads a QuickBooks accounting team. With over a decade of experience in nonprofit and corporate accounting, she brings a strategic mindset to designing scalable workflows, optimizing financial operations, and delivering accurate reporting tailored to each client's needs. She also plays a key role in driving onboarding, overseeing daily operations and continuously refining team workflows to maintain high service standards.
Jatin Narang is the CEO of Verito, an accounting-focused cloud and IT services provider.
Eric Fenton, Principal of Insurance Consulting at EPAM and a 2024 Global Insurtech Influencer Award Winner, is a strategic visionary focused on AI, innovation and emerging trends in the insurance and Insurtech landscape. A certified automation
professional with over 25 years of experience, he leverages deep industry expertise and
EPAM's multidisciplinary, end-to-end capabilities to deliver high-impact technology
solutions that create strategic value for insurance companies. Eric collaborates closely
with business and technical stakeholders, aligning people, processes, and technology to
drive enterprise-wide transformation.
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.
