Page 622 - ACFE Fraud Reports 2009_2020

Non-Fraud-Related Human Resources-Related Red Flags
Misconduct by Perpetrators In some circumstances, negative events surrounding

We presented survey respondents with a list of com- a person’s conditions of employment (such as poor
mon non-fraud workplace violations and asked them performance evaluations, loss of pay or benefits, fear
to identify any that the fraudster had been engaged of job loss, etc.) can cause financial stress or resent-
in prior to or during the time of the fraud. As Figure ment toward the employer, which might play a role
39 shows, 45% of fraud offenders had committed in the decision to commit fraud. We refer to these
some form of non-fraud workplace violation, which events as “human resources-related red flags.” As
could potentially indicate a link between occupational Figure 40 shows, 39% of fraudsters had experienced
fraud and other forms of workplace misconduct. The some form of HR-related red flags prior to or during
most common non-fraud violation was bullying or the time of their frauds. The most common of these
intimidation, which was observed in 21% of all cases. were negative performance evaluations (14% of cas-
es) and fear of job loss (13%).

FIG. 39 Do fraud perpetrators also FIG. 40 Do fraud perpetrators experience negative
engage in non-fraud-related misconduct? HR-related issues prior to or during their frauds?

Yes 45% No 55% Yes 39% No 61%

Bullying or intimidation (21%) Poor performance evaluations (14%)

Fear of job loss (13%)
Excessive absenteeism (14%)
Actual job loss (5%)
Excessive tardiness (10%)
Cut in benefits (4%)
Excessive Internet browsing (7%)
Other (4%)
Sexual harassment (4%)
Cut in pay (3%)

Visiting inappropriate websites (4%) Demotion (3%)

Other (4%) Involuntary cut in hours (3%)

46 Perpetrators Report to the Nations