Behavioral red flags of insider fraud 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
