Page 467 - ACFE Fraud Reports 2009_2020

Non-Fraud-Related Misconduct
In addition to behavioral red flags, we asked respondents if the fraudsters they investigated had engaged in any
non-fraud-related workplace misconduct before or during their crimes. We wanted to see if there was a relation-
ship between occupational fraud and other types of inappropriate workplace behavior. We received 908 responses
to this question, and in 38% of those cases the perpetrator had engaged in at least one of the misbehaviors shown
in Figure 75. The most common type of non-fraud misconduct was bullying or intimidation, which was displayed
by one-sixth of the fraud perpetrators in our study. Another 14% of cases involved individuals who were excessively
absent from work. Fewer than 5% of cases involved fraudsters who had engaged in sexual harassment or who had
a history of visiting inappropriate websites (such as pornography or illegal gambling) at the office.

Human-Resources-Related Red Flags
We also asked survey respondents if the perpetrators had experienced any of several human-resources-related
events, such as fear of job loss, cuts in pay or demotions. These circumstances could potentially cause an individual
to experience financial pressure that might lead to an occupational fraud, or they could provide the means for a
perpetrator to rationalize his or her conduct. We received just over 1,000 responses to this question, and in 25% of
those cases the perpetrator had experienced an HR-related event immediately before or during the commission of
the fraud. As illustrated in Figure 76, the most common HR-related red flag was a poor performance evaluation,
which occurred in 11% of all cases. Seven percent of occupational fraudsters also experienced a fear of job loss due
to downsizing or restructuring in their company.

Figure 75: Non-Fraud-Related Misconduct Figure 76: HR-Related Red Flags

Bullying or Intimidation
16.6% Poor Performance Evaluations
11.4%

Sexual Harrassment
2.6%
Involuntary Cut in Hours
Visiting Inappropriate Excessive Absenteeism 1.4% Fear of Job Loss Due to
Internet Sites 14.4% Downsizing/Restructuring
3.5% Demotion 7.4%
2.4%
Excessive
Internet Browsing Excessive Tardiness Cut in Benefits
7.3% 8.1% 3.0%
Cut in Pay
3.1% Actual Job Loss Due to
Downsizing/Restructuring
3.1%

RepoRt to the NatioNs oN occupatioNal FRaud aNd abuse 63