Common Characteristics of Employee Perpetrated Fraud

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:

  1. A long term employee that management/ owners respect and trusts.
  2. An employee that works long hours and rarely takes a vacation.
  3. An employee who is in charge of several key business processes with little or no management/owner oversight.
  4. 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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