So you've received a tip that there may be an occupational fraud in your organization, which led to an investigation and you're pretty sure you've caught the culprit, right handed. What do you do next? Turn them in ask for restitution. Here's what happened in the cases included in the research study published by the CACFP. Consistently about two thirds of fraud cases get referred to law enforcement agencies for prosecution. This is an important step for an organization to take not only to show its own people that fraud has a zero tolerance, but also for society at large.

When the fraudster is allowed to walk away or prosecuted. The individual will in all likelihood reemerge in another organization somewhere else where they may continue on. Have those cases that were referred on to to the police. Three quarters of the alleged fraudsters are eventually found guilty of committing occupational fraud Rod of those cases that are not referred on to law enforcement agencies. The reasons are because of the fear of bad publicity, or the cost to pursue, however number believe that internal discipline is sufficient and make private arrangements for the settlement as well. The big question for any organization victimized by fraud is whether or not the organization can get its money back.

In half of the cases investigated, there was sadly no recovery. Only in a small minority of cases does the victim organization recover the lost funds from occupational fraud? So the key takeaways in this short lesson are, first of all, prosecuting a fraudster is just the right thing to do. Not only for your own employees to set an example, but first society at large. Secondly, if you've suffered a loss at the hands of an occupation of thought the chances of a full recovery are slim. That's all for this lesson.

So until next time, don't stop to get to the top when you get to the top, don't stop.