The Association of Certified Fraud Examiners found occupational frauds
are more likely to be detected by tips (34% of cases) than by internal
audits (20%), external audits (12%), internal controls (19%) or police
alerts (4%); accidental detection uncovered fraud 25% of the time. In
some of the 1,134 cases studied, companies reported more than one
initial detection method.
Nearly two out of three tips came from employees, with the remaining
third supplied by outside (customers and vendors) or anonymous
Source: 2006 ACFE Report to the Nation on Occupational Fraud
& Abuse, The Association of Certified Fraud Examiners, www.acfe.com/fraud/report.asp.