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Written by Marijn Overvest | Reviewed by Sjoerd Goedhart | Fact Checked by Ruud Emonds | Our editorial policy

Procurement Fraud Statistics 2024 — 20 Key Figures

Key takeaways

  • Procurement fraud is a concerning financial issue continuously occurring within the procurement field.
  • Unfortunately, this concern also develops with the advancement of technology in the procurement processes.
  • Implementing robust procurement technology security can help alleviate fraud concerns.
Procurement fraud statistics showcase how often a company loses financial gain because of fraudulent acts against said companies. This article shows the latest statistics about procurement fraud in 2023. This article will also delve deeper into why exactly people turn to fraudulent acts within procurement, hoping to keep you aware and alert concerning procurement fraud within your organization.

20 Procurement Fraud Statistical Figures That You Should Know

If you’re wondering about the global impact of procurement fraud in the industry then here are some key figures you should know.

1. Digital fraud losses will surpass $348 billion globally by 2027

The unfortunate but inevitable effect of fraud is the loss of financial gain. According to Comprara, it is estimated that by 2027 over $348 billion will be lost globally due to fraudulent acts, which cannot be eliminated but can only be minimized.

2. Over 51% of organizations have experienced fraud in the past 2 years

Due to the rise of fraud experienced by organizations, concerns about misconduct and irregularities due to either negligence or deliberate actions because of collusion and fraud are also on the rise. This is understandable because 51% of organizations have experienced fraud in the past 2 years according to PwC.

3. Fraud Detection and Prevention Market will grow at a CAGR of 28.22%

By 2030, according to Extrapolate, the fraud detection and prevention market may grow to a valuation of USD 200.37 billion. This is due to quickly increasing digitalization, the adoption of AI and data analytics, and other key factors. The fraud detection and prevention market is estimated to grow at a CAGR of 28.22%.

4. The top concealment method used by fraudsters is creating fraudulent physical documents (40%)

Four of the most used methods of concealment are creating fraudulent physical documents (40%), altering physical documents (36%), altering electronic documents (27%), and creating fraudulent electronic documents (26%), according to Finances Online. This shows that the preferred method for fraudulent acts is the creation of physical documents.

5. $50 billion each year is lost from businesses because of employee theft

Employee theft causes severe financial losses to businesses, whether already established and big corporations or small local businesses. Each year, $50 billion is lost from businesses because of employee theft. This is because 57% of fraud is committed by an insider of the organization itself or a combination of insiders and outsiders according to PwC.

6. 97% of fraud examiners say analytics increases the efficiency of fraud detection programs

The increase in fraudulent crimes results in an increase in its prevention and about 97% or more of fraud examiners consider analytics a significant tool when it comes to increasing fraud prevention and boosting the accuracy and efficiency of fraud detection programs.

This is according to the 2023 survey of SAS and the ACFE.

7. The top 3 sectors where fraud occurs are finance, insurance, and healthcare

According to Marketsplash, 84% of incidents within healthcare occur because the perpetrator is looking for financial gain.  Meanwhile, finance and insurance have the highest number of perpetrators who are business partners. The top 3 sectors targeted by fraud are the finance, insurance, and healthcare sectors.

8. 75% of employees have stolen from their employer

The biggest percentage (90%) of loss from theft is caused by employees, says Finances Online. 60% of employees divulged that they would steal if they knew they wouldn’t get caught and 75% of them have stolen from their employers at least once.

9. 70% of companies use 3 or more tools to help with fraud prevention

Companies are finding ways to balance the prevention of fraud and smooth consumer experience as identity verification is important but consumer comfort also has to be kept in mind.

Ekata states that 70% of companies use 3 or more tools to help prevent fraud while ensuring the consumer experience remains smooth and comfortable.

10. Losses caused by fraud over the last two decades are 6.05% of the gross domestic product

The last 20 years have seen an increase in fraud and its losses, especially with the advent of new technologies. In fact, for the last two decades, fraud has represented 6.05% of the global average rate loss in gross domestic product says Cointelegraph.

11. 86% of fraud cases are asset misappropriation

Different kinds of fraudulent acts can be committed but the top 3 are asset misappropriation, corruption, and financial statement fraud.

Asset misappropriation accounts for 86% of fraud cases while corruption accounts for 43% and financial statement fraud accounts for 10% according to Marketsplash.

12. North America accounts for 42% of total fraud e-commerce losses 

Ekata states that out of all the regions, North American merchants account for 42% of total fraud e-commerce value loss globally. Western Europe makes up around 26% of the loss, followed by Asia making up at least 22% of total fraud e-commerce value loss.

13. Insider threat incidents have increased by 47% over the last two years

Every year insider threats affect businesses globally and cause significant financial loss, as seen in the statistics of Softactivity.

47% of insider threats have increased over the last two years and don’t show any signs of diminishing with organizations being on the guard as 66% of them feel that insider attacks are more likely to happen due to the surge in fraudulent crimes committed.

14. Nearly half of the 31% of EU&R companies have experienced procurement fraud

Cybercrime dominates in the energy, utilities, and resources (EU&R) sector where the biggest threat is procurement fraud. 31% of these EU&R companies, as stated by BusinessChief, experience crimes with nearly half of those crimes being procurement fraud.

15. Cybercrime cost increase by 15% in the next few years

Cybercrime continues to be on the rise with an estimated cost of 10.5 trillion by 2025, according to Astra. This 15% increase in cybercrime costs means an estimated $8 trillion loss in the year 2023 alone with 80% of crimes reported attributed to phishing within the technology sector.

16. 50% of fraud cases involve some degree of corruption

Things like invoice kickbacks, illegal gratuities, and purchasing schemes are some of the things considered corruption. 50% of all fraud cases involve some level of corruption. Additionally, financial statement fraud only accounts for about 10% of fraud but is the most damaging and incurs almost 6 times the loss from asset misappropriation.

17. 8% of fraud schemes used cryptocurrency

About 8% of fraud cases involved cryptocurrency, 48% of which used cryptocurrency for bribes or kickback payments. 43% of perpetrators used cryptocurrency as a means to convert their assets. And 35% of perpetrators used cryptocurrency for a money laundering scheme.

18. Managers make up 39% of perpetrators committing fraud

Managers are the most likely demographic to commit fraud, making up 39% of perpetrators. Closely following are employees who make up 37% of perpetrators committing fraud with owners and executives only making up 27% but causing 3 times as much median loss compared to managers.

19. 44% of fraud cases occur in private companies

Private companies are more likely to experience fraud attacks with a whopping 44% of cases occurring within private organizations. While both private and public organizations have a median loss of $150,000 only 26% of fraud attacks occur in public companies.

20. 60% of companies experience 30 or more cyber incidents in one year

Companies are subjected to 30 or more cyber incidents annually. 63% of these attacks happen because of employee or contractor negligence, showing that a significant number of cybercrimes committed can be prevented with the proper precautions.

Cyber-enabled Economic Crime

As the world progresses to the digital, so does the world of crime. Among the 19 categories of economic crime, cybercrime takes the cake for being the most infamous and the most disruptive within the last two years.

Companies need to find new ways to connect disjointed departments and identify risk scenarios across various functions. Cyber frauds and threats are usually handled by different departments that do not work or communicate with one another about risks, which cyber criminals know and take advantage of.

Procurement Fraud Increased Significantly During COVID-19

Social instability and economic downturn paved the way for fraud and financial crimes. During the pandemic, remote work grew exponentially. This lowered the risks of asset misappropriation but increased digital security issues as well.

Physically attacking employees or blackmailing has become the new concern as companies allow access to corporate data from the comfort of their employees’ homes. With this in mind, companies need to increase their awareness of this emerging risk.

External Threats on The Rise

A survey by PwC has found a disturbing trend among fraud and economic crimes in 2022. External entities that cannot be easily influenced or controlled are becoming stronger now. The biggest problem with external threats or fraudsters is that they are immune to traditional fraud prevention tools such as training, code of conduct, and investigations which force companies to seek legal action.

For years the main focus of fraud and theft in businesses was internal. However, due to the trend in external threats, companies may have had to shift their focus to consider external threats just as much.


Although consumer fraud and cybercrime remain worrisome to businesses, new threats may become bigger problems in the future. The potential of these threats fortunately draws attention to them which hopefully leads to better ways of prevention should they cause more problems in the future.

These emerging threats include environmental, social, governance (ESG), and supply chain fraud. The types and ways of fraudulent acts and how they can be committed are increasing and will do so continually in the coming years as supply chain disruptions continue to hurt international trade.

Frequently asked questions

What is a fraud?

Fraud is the act of deception for personal or financial gain.

What is cybercrime?

Cybercrime is a breach of security through a computer or computer network.

What is procurement fraud?

Procurement fraud is when acts of fraud are used to manipulate procurement processes.

About the author

My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.

Marijn Overvest Procurement Tactics