Behavioral red flags of insider fraud Page Article Recognizing the behavioral clues displayed by fraudsters can help organizations more effectively detect fraud and minimize their losses.7 Key Warning Signs Living Beyond Means - A fraudster living beyond his or her means has been the most common red flag since 2008.Divorce/family problemsFinancial difficulties"Wheeler-dealer" attitudeControl issues, unwillingness to share dutiesUnusually close association with vendor/customerIrritability, suspiciousness, or defensivenessJob Performance as a Warning SignA fraud perpetrator's job performance will often suffer while the scheme is taking place. Each of these performance-related issues were cited in at least 10% of fraud cases.Poor performance evaluationExcessive absenteeismFear of job lossExcessive tardinessDenied raise or promotionPersonal Life as a Warning SignIn 63% of cases, the fraudster exhibited red flag behavior associated with his or her personal life.Living beyond meansExcessive family/peer pressure for successInstability in life circumstancesPast legal problemsSocial isolationAddiction problemsDivorce/family problemsFinancial difficulties