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Crime > Frauds: Group totals

Ian Graham, Staff Editor

Author: Ian Graham, Staff Editor

Former WorldCom chairman Bernard Ebbers was convicted on March 15 of committing a US$11-billion fraud that led to the biggest bankruptcy filing in U.S. history. Found guilty of securities fraud, making false filings and conspiracy, Ebbers faces up to 85 years in prison.

According to the Association of Certified Fraud Examiners, fraud costs U.S. organizations more than US$400 billion each year.

The median loss caused by men, who commit 75 percent of the offenses, is US$185,000; the median loss caused by women is US$48,000. Losses caused by managers are four times bigger than those caused by employees. The median losses caused by executives are 16 times the size of those caused by employees.

An American corporate fraud task force, which pools resources from the Justice Department, the FBI, the SEC and other agencies, has secured more than 500 convictions on about 900 cases filed since its formation three years ago.

DEFINITION: Total recorded frauds. Crime statistics are often better indicators of prevalence of law enforcement and willingness to report crime, than actual prevalence.

CONTENTS

# COUNTRY AMOUNT DATE GRAPH
High income OECD countries 2.46 million 2002
Group of 7 countries (G7) 1.99 million 2002
Europe 1.96 million 2002
NATO countries 1.85 million 2002
European Union 1.82 million 2002
Eurozone 1.24 million 2002