| The Association of Certified Fraud Examiners has | | | | 2. Financial Difficulties. Sudden or persistent money |
| just released the 2008 Report to the Nation on | | | | troubles can drive normally honest employees to |
| Occupational Fraud and Abuse. Based on data | | | | desperate acts. |
| from 959 cases of occupational fraud investigated | | | | 3. A "Wheeler-Dealer" Attitude. Employees that |
| by Certified Fraud Examiners between 2006 and | | | | act in a conniving or scheming way were often |
| 2008, this study is an in-depth analysis of the | | | | found to have engaged in fraud. Over 20% of the |
| causes, costs, and ramifications of fraud in the | | | | cases studied involved a perpetrator who |
| workplace. | | | | demonstrated this attribute. |
| According to the Report, there are several red | | | | 4. Refusing to Take Vacations. Often viewed as |
| flags that indicate the possibility that an employee | | | | "the perfect employee", many fraudsters refuse |
| may commit fraud. These indicators consist of | | | | to take vacation time because they fear their |
| behavior patterns that management should be | | | | scheme will be discovered in their absence. In |
| aware of when attempting to detect and prevent | | | | fact, this is one of the most common ways |
| fraud in their organization. While not every | | | | internal theft is detected. |
| indicator is listed here, the following five red flags | | | | 5. Past Employment Problems. Past behavior is a |
| are critical warning signs: | | | | good predictor of future performance. If an |
| 1. Living Beyond One's Means. This is the most | | | | employee has stolen from his company in the |
| common trait found in employee theft cases. The | | | | past, chances are good he will steal again. |
| need to support an affluent lifestyle often leads | | | | Pre-employment screening is a great way to |
| to embezzlement and other crimes. | | | | identify this red flag. |