Page 620 - ACFE Fraud Reports 2009_2020

THE RED FLAGS OF FRAUD

Understanding and recognizing the behavioral red flags displayed by fraud perpetrators
can help organizations detect fraud and mitigate losses.

IN
85%

fraudsters displayed at least
OF CASES one behavioral red flag Living beyond
means
AND IN
50% Financial

multiple red flags
OF CASES they exhibited di­culties
Unusually close
association with
These vendor/customer 2018
behavioral Control issues, 2016

red flags to share duties 2014
unwillingness
have been the most common in
every one of our studies dating Divorce/ 2012
back to 2008, with a remarkably family problems
consistent distribution 2010
2008
“Wheeler-dealer”
attitude

0% 10% 20% 30% 40%

OWNER/ Red flags varied by Red flags varied by
EXECUTIVE PERPETRATOR’S POSITION EMPLOYEE PERPETRATOR’S GENDER

24% Unusually close association with 16% 24% Financial difficulties 39%
vendor/customer

21% Control issues, unwillingness to 8% 11% Divorce/family problems 20%
share duties

22% “Wheeler-dealer” attitude 9% 2% Instability in life circumstances 6%

Irritability, suspiciousness, or Unusually close association with
18% defensiveness 10% 24% vendor/customer 11%

23% Financial difficulties 35% 16% “Wheeler-dealer” attitude 6%

4% Complained about inadequate pay 11% 8% Excessive pressure from within 3%
the organization

44 Perpetrators Report to the Nations