Page 554 - ACFE Fraud Reports 2009_2020

Perpetrators

Behavioral Red Flags Based on Scheme Type
In Figure 96 we analyzed behavioral red flags based on the type of fraud that was committed. Not surprisingly, those
who engaged in corruption were much more likely than other fraudsters to have an unusually close association with a
vendor or customer. Individuals who committed financial statement fraud had experienced excessive pressure to per-
form within their organizations in almost one-fifth of cases—much more than in either corruption or asset misappropri-
ation schemes. And those who committed asset misappropriation were more likely to be experiencing known financial
difficulties. Regardless of the type of fraud committed, living beyond means remained the most common behavioral red
flag, occurring in nearly half of the cases in each category.

Figure 96: Behavioral Red Flags Based on Scheme Type

48.7%
Living Beyond Means 48.6%
48.5%
Financial Difficulties 23.8% 32.4%
23.5%
Unusually Close Association 18.3%
with Vendor/Customer 14.0% 37.5%
15.0%
Wheeler-Dealer Attitude 20.7%
24.0%
Control Issues, Unwillingness 16.0%
15.9%
to Share Duties 17.5%
Divorce/Family Problems 10.6% 14.4%
11.0%
Irritability, Suspiciousness, 12.8%
14.4%
or Defensiveness 6.8% 11.2% 17.5%
BEHA VIORAL RED FLA G Refusal to Take Vacations 5.5% 8.0% 9.8%
Addiction Problems
13.0%
Complained About
9.6%
Inadequate Pay
No Behavioral Red Flags
6.8%
9.5%
8.3%
8.1%
9.0%
Excessive Pressure from
Within Organization
7.1%
Past Employment- 5.8% 9.8% 18.0%
Related Problems 3.5% 5.9%
6.0%
Social Isolation 4.4%
7.0%
6.3%
Past Legal Problems 5.7%
4.5%
5.4%
Other 6.1%
7.0%
Excessive Family/Peer 5.3% Asset
6.8%
Pressure for Success 6.0% Misappropriation
Complianed About 4.4% Corruption
4.7%
Lack of Authority 4.5%
Instability in 4.5% Financial
Life Circumstances 3.0% Statement Fraud
3.5%
0% 10% 20% 30% 40% 50% 60%
PERCENT OF CASES

70 REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSE