Tim Deehan, President, Actionable Intelligence Technologies

The typical organization in loses 5% of its revenues to fraud each year.  Although 5% may not sound like much, when you consider that the average profit margin in the U.S. is only 6.5%, a typical fraud occurrence could easily mean the difference between solvency and bankruptcy.  Globally that translates to $3.5 trillion.  In 20% of cases caused losses exceed $1 million.  Walmart posted 3.1 % and Big Oil averaged 5.1%.  For larger organizations with such small profit margins it is easy to see how internal frauds have been able to destroy very successful companies along with their accounting/audit firms.