Page 464 - ACFE Fraud Reports 2009_2020

Behavioral Red Flags Based on Perpetrator’s Position
Figure 72 shows how behavioral red flags were distributed based on the fraudster’s position at the victim organi-
zation. This analysis provides some insight into how the pressures and motivations that lead to occupational fraud
might vary depending on the fraudster’s level of authority. For instance, employee-level fraudsters are much more
likely than their counterparts to show signs of financial difficulties while a fraud is ongoing. Meanwhile, owners/
executives and managers are more likely than employees to exhibit “wheeler-dealer” attitudes, to have unusually
close associations with vendors or customers and to display control issues. We also see a much higher rate of
owner/executive fraudsters who were under excessive pressure to perform within their organizations.

Figure 72: Behavioral Red Flags Based on Position

42.0%
Living Beyond Means 46.8%
43.7%
40.3%
Financial Difficulties 28.5%
25.2%
17.9%
Divorce/Family Problems 17.6%
15.0%
13.8%
“Wheeler-Dealer” Attitude 18.1%
29.6%
Unusually Close Association 13.8% 28.5%
with Vendor/Customer 24.3%
Control Issues, Unwillingness 13.4% 27.1%
to Share Duties 28.6%
11.6%
12.5%
Addiction Problems
BEHAVORIAL RED FLAG Irritability, Suspiciousness 4.4% 10.0% 15.5% 19.0%
10.7%
11.0%
or Defensiveness
10.3%
Past Employment-Related
Problems
Social Isolation
3.4% 6.5% 9.7%
Complained About 9.5% 11.6%
Inadequate Pay 6.8%
7.3%
Refusal to Take Vacations 12.3%
4.9%
7.1%
Instability in Life Circumstances 5.3%
2.9%
Excessive Pressure from 6.5% 7.6%
Within Organization 14.6%
Excessive Family/ 4.9% 6.5%
Peer Pressure for Success 6.8% Employee
6.3%
Past Legal Problems 3.9%
6.8% Manager
Complained About 6.0% 9.3% Owner/
Lack of Authority 3.4% Executive
0% 10% 20% 30% 40% 50%

PERCENT OF CASES

60 REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSE