The Association of Certified Fraud Examiners (ACFE) recently released its bi-annual report regarding occupational fraud and abuse. In the ACFE’s 2018 Report to the Nations, data is provided regarding the most common types of fraud schemes in various industries. For the construction category, the two schemes that were most frequently present in reported cases were corruption and billing schemes. As shown in the chart below, a corruption scheme was present in at least one-third of construction frauds reported, and a billing scheme was present in at least one-fourth of construction frauds.
In the 2018 Report to the Nations, 90 cases of occupational fraud with a median loss of $227,000 were reported on for the construction industry. In the 2016 Report to the Nations, there were 86 reported cases with a median loss of $259,000. In comparison to other industries, the Construction category ranked 9th out of 24 industries for most reported cases of fraud and ranked 8th for highest median fraud loss.
To learn more about our fraud investigation capabilities, or if you feel that your organization may be the victim of a fraud, contact Brittany Garver or Bill Foote at 301.231.6200.