Behavioural signs of fraud are missed
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A US report has warned that some of the biggest indicators of people committing fraud are not identified through a traditional audit or other traditional controls.
The research was compiled by the Association of Certified Fraud Examiners after a survey of US fraud investigators between Jan-uary 2008 and December 2009 and global data from among 1,843 cases.
Men aged between 31 and 45 with no prior convictions are the most likely category to commit fraud and only 7% of perpetrators had been previously convicted of a fraud offence. The most common indica-tors of fraud were individuals living beyond their means in 43% of cases and experiencing financial difficulties in 36% of cases.
James Ratley, president of the ACFE, says: “Fraudsters exhibit behavioural warning signs of their misdeeds. It’s important to remem-ber that this human element of fraud is not identified through an audit or other traditional controls.
“This is why the staff should be trained to recognise these and other common behavioural signs that a fraud might be occurring.”
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