Page 317 - ACFE Fraud Reports 2009_2020

Red Flags Based on Region
The following tables present the distribution of behav- Asia — 271 cases
ioral red flags based on the region in which the fraud Number percent
occurred. In every region, financial difficulties or living Behavioral Red Flag of Cases of Cases
32
beyond one’s means was cited as the most common red Living beyond means 96 35.4%
flag. We also noted that unusually close associations with Unusually close association with vendor 94 34.7%
Financial difficulties 62 22.9%
vendors or customers was among the three most com-
Control issues, unwillingness to share duties 46 17.0%
mon red flags in every region except the United States Excessive pressure from within organization 41 15.1%
and Canada, where it ranked 6th and 9th, respectively. Wheeler-dealer attitude 39 14.4%
Refusal to take vacations 31 11.4%
united States — 876 cases Irritability, suspiciousness or defensiveness 27 10.0%
Complaining about inadequate pay 25 9.2%
Number percent
Behavioral Red Flag Complaining about lack of authority 19 7.0%
of Cases of Cases
Addiction problems 18 6.6%
Financial difficulties 392 44.7%
Past employment-related problems 15 5.5%
Living beyond means 391 44.6%
Divorce/family problems 14 5.2%
Control issues, unwillingness to share duties 205 23.4%
Excessive family/peer pressure 13 4.8%
Divorce/family problems 201 22.9%
Instability in life circumstances 8 3.0%
Wheeler-dealer attitude 173 19.7%
Past legal problems 6 2.2%
Unusually close association with vendor 141 16.1%
Irritability, suspiciousness or defensiveness 127 14.5%
Addiction problems 124 14.2% Europe — 129 cases
Past employment-related problems 85 9.7% Number percent
Behavioral Red Flag
Past legal problems 75 8.6% of Cases of Cases
Refusal to take vacations 74 8.4% Living beyond means 54 41.9%
Complaining about inadequate pay 64 7.3% Unusually close association with vendor 36 27.9%
Instability in life circumstances 54 6.2% Control issues, unwillingness to share duties 33 25.6%
Excessive pressure from within organization 51 5.8% Financial difficulties 32 24.8%
Excessive family/peer pressure 39 4.5% Wheeler-dealer attitude 29 22.5%
Complaining about lack of authority 37 4.2% Irritability, suspiciousness or defensiveness 22 17.1%
Divorce/family problems 21 16.3%
32 The sum of percentages in these tables exceeds 100% because in many cases Past employment-related problems 17 13.2%
perpetrators displayed more than one behavioral red flag.
Refusal to take vacations 16 12.4%
Addiction problems 10 7.8%
Past legal problems 10 7.8%
Excessive pressure from within organization 10 7.8%
Instability in life circumstances 9 7.0%
Complaining about inadequate pay 8 6.2%
Complaining about lack of authority 7 5.4%
Excessive family/peer pressure 6 4.7%

2010 RepoRt to the NAtioNs ON OccuPATIONAl FRAUD ANd AbuSE | 73