When employees hear that one of their co-workers has been arrested for committing workplace fraud, many times they are surprised that someone they know would commit such an act.
However , it has become our experience that there are common characteristics of employees who perpetrate workplace fraud. The four common red flags we see when conducting employee fraud investigations are:
- A long term employee that management/ owners respect and trusts.
- An employee that works long hours and rarely takes a vacation.
- An employee who is in charge of several key business processes with little or no management/owner oversight.
- An employee who lives a lifestyle that exceeds his annual income.
This list is not intended to be an all encompassing predictor of the potential for workplace fraud but a manager/business owner who is aware of these telltale signs may be able to prevent a significant loss of business assets and reputation.
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