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Misusing Statistics

Last Friday Harvard Business Review in its “The Daily Stat” series published that the vast majority of business fraudsters had no prior offenses referring to a report prepared by the Association of Certified Fraud Examiners (ACFE). ACFE argues that criminal background checks may have limited effect since only 7% of the fraud perpetrators in their study had been previously convicted of a fraud-related offense.

This is one of examples where statistics may lead to wrong conclusions when misused. In fact, in this case criminal background checks may deter fraudsters from getting into the industry in the first place.

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