Internal fraud has received a great deal of attention from interested parties like governments or non-profit institutions. The Association of Certified Fraud Examiners estimates a US company’s losses on internal fraud to be seven percent of its annual revenues. In a previous report of the ACFE, in 2006, this estimation was only 5%, confirming the increasing threat internal fraud poses to companies. The main difference between statement and transaction fraud is that there isn’t theft of assets involved in financial statement fraud (FSF) The intention with transaction fraud is to steal or embezzle organizational assets.
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