The Association of Certified Fraud Examiners’ (ACFE’s) Report to the Nations: 2020 Global Study on Occupational Fraud and Abuse provides ample evidence that some fraud detection methods are better than others. In general, passive methods, such as accidental discovery or notification by police, coincide with longer-running schemes and higher financial costs. To nab dishonest employees quickly and limit losses, your company needs to be proactive. Shorten time, minimize costs Active methods include IT controls, data monitoring and analysis, account reconciliation, management review, surprise audits and internal audit. These methods can significantly lower fraud durations and losses. For example, frauds detected by IT controls had a median duration of six months and a median loss of $80,000. Those found through account reconciliation ran for a median of seven months...