Page 466 - ACFE Fraud Reports 2009_2020

Behavioral Red Flags Based on Gender
As noted in Figure 61 on page 51, males cause much higher fraud losses than females, even when the two groups
have similar levels of authority. Because of that discrepancy, we wondered if male and female fraudsters might
commit fraud for different reasons or exhibit different behavioral clues during their schemes. Figure 74 shows the
distribution of behavioral red flags based on the gender of the perpetrator. This data indicates that women are
much more likely than men to commit fraud while undergoing financial difficulties, experiencing divorce or other
family problems or showing signs of instability in their life circumstances (such as frequent job changes, residence
changes, etc.). In contrast, male fraudsters more commonly engaged in an unusually close association with an
outsider or displayed “wheeler-dealer” tendencies. These red flags tend to be more common in corruption and
financial statement schemes than asset misappropriation schemes, and, as shown in Figure 62 on page 51, males
tend to commit both corruption and financial statement fraud at a much higher rate than females.

Figure 74: Behavioral Red Flags Based on Gender

Living Beyond Means 42.3% 46.6%

Financial Difficulties 27.4% 43.5%

Unusually Close Association with Vendor/Customer 26.0%
13.4%
“Wheeler-Dealer” Attitude 22.7%
10.2%
Control Issues, Unwillingness to Share Duties 20.3%
24.1%
Irritability, Suspiciousness or Defensiveness 14.6%
15.4%
14.2%
Divorce/Family Problems 10.8% 13.4% 22.0%

Addiction Problems
BEHAVIORAL RED FLAG Excessive Pressure from Within Organization 6.0% 8.6% 9.9%
9.9%

Complained About Inadequate Pay

8.9%
Past Employment-Related Problems
8.6%
Refusal to Take Vacations 7.6%
10.7%
Complained About Lack of Authority 7.6%
4.7%
Social Isolation 7.5%
7.1%
Excessive Family/Peer Pressure for Success 6.1%
6.0%
Past Legal Problems 5.2%
6.5%
Male
Instability in Life Circumstances 4.0%
8.9% Female
0% 10% 20% 30% 40% 50%
PERCENT OF CASES

62 REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSE