Warning signs that fraud is being committed in your company

According to statistics collected from actual fraud investigations the typical company fraudster will be a man between the ages of 36 and 45 who works in a finance based role, usually holding a senior management position and will have been at the company for over 10 years. Whilst investigations have proved this to be true spotting a fraudster in your own company is much more difficult and not as simple as picking out someone who matches this description.

In the last year shockingly fraud by employees has risen by 10% which is a nightmare for management and all shareholders. Whilst there is no sure fire way to know if someone is committing company fraud there are warning signs you can look out for which may include the following:

  • The first sign is that the person will rarely ever take holidays. Whilst this may be the sign of a dedicated and hardworking employee, it is worth considering that it could be a sign of a person who is conscious of leaving their work open for others to look at in their absence.
  • Refusing a promotion and not properly explaining their refusal can also be a clear sign, as whilst for most people a progression in the workplace is something sought after, someone attempting fraud may want to stay under the radar.
  • An employee having an unusual amount of personal finances or appearing to lead an excessive or lavish lifestyle is one of the most common signs. People often carry out fraud for greed and therefore management should be aware of any employees who have suddenly received large sums of money from inheritances or ‘lotteries’.
  • Defence mechanisms should also be looked for when dealing with employees. If when asking the person about their work or perhaps their sudden increased wealth they become agitated and defensive it may be sign of guilt.
  • One of the most common ways people try to compensate for their money is through company expenses which they feel will go unnoticed. In this instance it is advisable to use data analytics for expenses to spot and keep track of any irregularities.