Symptoms of Fraud

How do you spot fraudulent activity?

Let's look at 𝟔 𝐒𝐲𝐦𝐩𝐭𝐨𝐦𝐬 𝐨𝐟 𝐅𝐫𝐚𝐮𝐝.

- 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 𝗔𝗻𝗼𝗺𝗮𝗹𝗶𝗲𝘀
Like missing documents, photocopied documents, illegible handwriting, and inaccurate ledger accounts

- 𝗜𝗻𝘁𝗲𝗿𝗻𝗮𝗹 𝗖𝗼𝗻𝘁𝗿𝗼𝗹 𝗪𝗲𝗮𝗸𝗻𝗲𝘀𝘀𝗲𝘀
Such as lack of physical safeguards, proper authorization, proper documentation, as well as an inadequate accounting system

- 𝗔𝗻𝗮𝗹𝘆𝘁𝗶𝗰𝗮𝗹 𝗔𝗻𝗼𝗺𝗮𝗹𝗶𝗲𝘀
These might include unexpected increases to expense accounts, unexplained inventory shortages, deviations from specifications, or unexpected budget shortfalls

- 𝗘𝘅𝘁𝗿𝗮𝘃𝗮𝗴𝗮𝗻𝘁 𝗟𝗶𝗳𝗲𝘀𝘁𝘆𝗹𝗲
Does the person seem to be living above their paycheck? Fraudsters rarely invest their gains, tending to spend lavishly, compulsively, and locally

- 𝗨𝗻𝘂𝘀𝘂𝗮𝗹 𝗕𝗲𝗵𝗮𝘃𝗶𝗼𝗿
Suspiciousness, inability to look people in the eye, argumentative, increased substance use, or an inability to relax

- 𝗧𝗶𝗽𝘀 𝗮𝗻𝗱 𝗖𝗼𝗺𝗽𝗹𝗮𝗶𝗻𝘁𝘀
Although fraudsters attempt to conceal their actions, effective controls and proximity to co-workers reveals suspicious behavior over time

We know the signs. If you suspect fraud within your organization, let us help you uncover the truth.
Contact us today to learn more.