Median Loss
Definition
The loss figure at the midpoint of the distribution of cases, used in the ACFE's data because it is more representative of typical cases than the mean, which is skewed by a small number of extremely large frauds.
Related terms
- Asset Misappropriation
- The largest Fraud Tree branch, covering schemes in which an employee steals or misuses the organisation's assets. Subcategories include cash schemes (skimming,...
- Corruption
- Schemes in which an employee misuses their position to gain a direct or indirect benefit, typically involving a third party. The four...
- Financial-Statement Fraud
- Intentional misstatement or omission in financial reports to deceive users of those reports, typically to inflate earnings, understate liabilities, or maintain a...
- Occupational Fraud Tree
- The ACFE's hierarchical classification of occupational fraud schemes, with three top-level branches (asset misappropriation, corruption, financial-statement fraud) subdividing into dozens of named...
- Skimming
- An off-book cash theft: revenue is stolen before it enters the accounting system, so no entry is ever made. Skimming is harder...
Explained in
- The ACFE Occupational Fraud TaxonomyThe loss figure at the midpoint of the distribution of cases, used in the ACFE's data because it is more representative of typical cases than the mean, which i...