Beware of occupational fraudsters

I have come across occupational fraud during the course of my career. Regardless of industry, profession, position, race and religion, amongst other variables, there are individuals that will be motivated to commit fraud across organisations and businesses – fraud is ‘an intentional act or omission that is designed to deceive another person, resulting in a gain for them and a loss for their victim’.

I have seen first hand, incidences of occupational fraud across industries I’ve worked in and it amazes me the reasons the perpetrator gives when caught, from ‘I didn’t realise I had crossed the line’ to ‘I thought that was a legitimate expense’ to ‘I had a lapse of judgement on this occasion’.

According to the ACFE and their ‘2020 Report to the Nations’, an annual global study on occupational fraud and abuse, more than half of all occupational fraud came from these four departments:

1. Operations (15%)
2. Accounting (14%)
3. Executive/Upper Management (12%)
4. Sales (11%)

And there are 7 key behavioural clues displayed by fraudsters to be aware of:

1. Living beyond their means.
2. Experiencing financial difficulties.
3. An unusually close association with a client/customer/vendor.
4. Control issues and an unwillingness to share duties.
5. Irritable, suspicious or defensive
6. Exhibits a ‘wheeler dealer’ attitude.
7. Experiencing divorce/family problems.

Watch the video here.

Source: 2020 Report to the Nations. Copyright 2020 by the Association of Certified Fraud Examiners, Inc.

Sharon Box

Founder, Owner and Lead Behavioural Investigator – Mind Hush Group.