You can run all the background checks you want, but if 87 per cent of corporate fraud is committed by employees who have never been charged or convicted of a fraud-related offense before, you may conclude that this type of research is of limited value. But statistics can be deceiving. Background checks are still effective at keeping convicted criminals out of your most vulnerable positions. And hiring convicted fraudsters is unlikely to lower the amount of internal fraud, just skew the percentage away from first-time offenders.

FREE Investigation Report Template

Prepare thorough, consistent investigation reports with our free report template.

Download Template

The most effective way to reduce your company's risk of fraud is through an effective fraud prevention plan that includes monitoring, mechanisms for reporting and investigating, risk assessment and a company culture that encourages ethical behavior. And, of course, background checks.

The Lowers Risk Group has created an infographic illustrating some of the data from the ACFE's 2012 Report to the Nations, with recommendations for fraud prevention strategies that address the statistics.