Page 465 - ACFE Fraud Reports 2009_2020

Behavioral Red Flags Based on Scheme Type
Figure 73 provides an analysis of behavioral red flags based on the type of fraud that was committed. Individuals
who committed financial statement fraud were much more likely to be under excessive organizational pressure
compared to those who engaged in corruption or asset misappropriation. In contrast, fraudsters engaging in cor-
ruption were, not surprisingly, much more likely to have exhibited an unusually close association with a vendor
or customer.

Figure 73: Behavioral Red Flags Based on Scheme Type

45.8%
Living Beyond Means 44.7%
33.0%
35.8%
Financial Difficulties 25.3%
20.8%
Control Issues, Unwillingness 20.9%
to Share Duties 22.9% 29.2%
Unusually Close Association 19.1%
with Vendor/Customer 37.0%
16.0%
17.3%
Divorce/Family Problems 13.9%
12.3%
17.1%
“Wheeler-Dealer” Attitude 26.7%
24.5%
Irritability, Suspiciousness 15.0%
or Defensiveness 17.8%
14.2%
12.8%
BEHAVORIAL RED FLAG Complained About 6.6% 9.1% 10.4%
Addiction Problems
7.5%
9.4%
9.5%
9.9%
Inadequate Pay
Past Employment-
Related Problems
7.5%
Refusal to Take Vacations 7.3% 9.0%
7.5%
Social Isolation 7.5%
7.5%
10.4%
Excessive Family/Peer 6.7%
Pressure for Success 5.7% 7.0%
Excessive Pressure from 6.4% 11.0%
Within Organization 26.4%
Instability in 6.2% Asset
Life Circumstances 4.0% 5.7% Misappropriation
6.0%
Past Legal Problems 5.9% Corruption
8.5%
Financial
Complained About 5.9%
Lack of Authority 2.8% 8.1% Statement
Fraud
0% 10% 20% 30% 40% 50%
PERCENT OF CASES

REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSE 61