In its 2014 Report to the Nations on Occupational Fraud and Abuse, the Association of Certified Fraud Examiners (ACFE) estimated that a typical organization loses 5% of its revenues to occupational fraud each year. When it comes to construction, the ACFE found that the median loss suffered due to fraud schemes was in the neighborhood of $250,000.

It's not just contractors who are victims of such fraud; project owners, investors and creditors also risk losses. That's why it's critical to understand common schemes and take steps to prevent them — and steps that will help detect fraud if it does still occur.

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