Back 

Behavioral red flags of insider fraud

   read  

  Decrease Text Size Increase Text Size

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 problems
  • Financial difficulties
  • "Wheeler-dealer" attitude
  • Control issues, unwillingness to share duties
  • Unusually close association with vendor/customer
  • Irritability, suspiciousness, or defensiveness

Job Performance as a Warning Sign

A 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 evaluation
  • Excessive absenteeism
  • Fear of job loss
  • Excessive tardiness
  • Denied raise or promotion

Personal Life as a Warning Sign

In 63% of cases, the fraudster exhibited red flag behavior associated with his or her personal life.
  • Living beyond means
  • Excessive family/peer pressure for success
  • Instability in life circumstances
  • Past legal problems
  • Social isolation
  • Addiction problems
  • Divorce/family problems
  • Financial difficulties











eFraud Prevention™, LLC