Page 707 - ACFE Fraud Reports 2009_2020

Non-Fraud-Related Misconduct Human Resources-Related Red Flags

by Perpetrators In some circumstances, negative events surrounding

In order to determine if there is a correlation between a person’s conditions of employment (such as poor
fraud and other forms of workplace violations, we performance evaluations, loss of pay or benefits,
asked survey respondents whether the fraudster had fear of job loss, etc.) can cause financial stress or
been engaged in non-fraud-related misconduct prior resentment toward the employer, which might play
to or during the time of the frauds. Figure 42 shows a role in the decision to commit fraud. We refer to
that 45% of occupational fraudsters had engaged in these events as human resources-related red flags.
some type of non-fraud-related misconduct. The most As Figure 43 shows, 42% of fraudsters had experi-
common was bullying or intimidation (20% of cases), enced some form of HR-related red flags prior to or
followed by excessive absenteeism (13%) and exces- during the time of their frauds. The most common of
sive tardiness (12%). these were negative performance evaluations (13% of
cases) and fear of job loss (12%).

FIG. 42 Do fraud perpetrators also FIG. 43 Do fraud perpetrators experience negative
FIG. 23 Do fraud perpetrators experience negative HR-related issues prior to or during their frauds?
FIG. 23 Do fraud perpetrators also engage in non-fraud-related misconduct?
engage in non-fraud-related misconduct? HR-related issues prior to or during their frauds?

No 55% No 58%

Yes 42%

Yes 45%

Which forms of non-fraud misconduct are most Which HR-related issues are most commonly
common among fraud perpetrators? experienced by fraud perpetrators?

Bullying or intimidation Poor performance evaluations
20% 13%
Excessive absenteeism Fear of job loss
13% 12%
Denied raise or promotion
Excessive tardiness 10%
12%
Actual job loss
Excessive internet browsing 6%
8% Cut in pay
4%
Other
4% Cut in benefits
4%
Sexual harassment Other
3% 3%
Visiting inappropriate internet sites Demotion
2% 2%
Involuntary cut in hours
2%

Perpetrators Report to the Nations 51