Explaining the ’20-60-20’ of Workplace Fraud

Westporter Kenneth Yormark, a forensic accountant for more than 25 years, told the Westport Rotary Club today about fraudulent acts perpetrated by company employees which he divides into a “20-60-20 formula.”  He said that 20 percent of company employees spend “a lot of time and effort trying to figure out angles to steal from the company where they work.” Another 60 percent are vulnerable to such unethical practices and often begin a fraudulent activity in a small way and then expand, he said. And finally, the remaining 20 percent he said adhere to a code of ethics. Yormark stressed the need for compliance systems for the middle 60 percent who need to be stopped from committing that first tempting fraudulent activity. (CLICK TO ENLARGE) Dave Matlow for WestportNow.com