The results of nonprofit fraud can be so devastating that nonprofit leaders live in constant dread of it and most utilize some kind of anti-fraud measures.
Being aware of where the damage occurs, or who commits the most costly damage can be helpful in preventing fraud or minimizing the damage it causes. The higher an individual is in the hierarchy, the less likely that person is to commit fraud, but when a highly placed executive does go astray, it’s usually for big money.
That was one of the messages being driven home during the Summit for New Risk Champions by Melanie Lockwood Herman of the Nonprofit Risk Management Center, citing information from the Association of Certified Fraud Examiners (ACFE). She offered the following facts to make nonprofit managers aware of the types of risks that exist as well as of the people who commit fraud:
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