Page 557 - ACFE Fraud Reports 2009_2020

Perpetrators

Human Resources-Related Red Flags
In addition to workplace violations, we also asked survey participants if the perpetrators had encountered any negative
human resources-related events (such as poor performance evaluations, loss of pay or benefits, fear of job loss, etc.)
prior to or during the time of the frauds. These types of events can cause financial stress or resentment toward the
employer, both of which are factors commonly associated with occupational fraud.

In more than 63% of cases, no HR-related red flag was identified (see Figure 99). However, in 12.2% of cases, the fraud
perpetrator had experienced fear of job loss, and in 10.1% the perpetrator had received poor performance evaluations.

Figure 99: Human Resources-Related Red Flags

HR-Related Red Flags
36.7%

No Red Flags Identified
63.4%

6.6% 2.9%

Breakdown of Human Resources-Related Red Flags (% of All Cases)

Fear of Job Loss
12.2%

Poor Performance Evaluations
Involuntary Cut in Hours 10.1%
1.1%
Demotion
2.4%
Cut in Benefits
2.6%
Cut in Pay Other
3.3% 8.4%

Actual Job Loss
8.1%

REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSE 73