Fraud Red Flags You Should Recognize at Work

fraud red flags

Fraud Red Flags You Should Recognize at Work

Fraudsters always show certain behavior in carrying out their actions. Behaviors that are indicative of fraud are also called red flags.

Based on the results of a survey conducted by Report to the Nation 2020, there was at least one red flag behavior that was carried out by the perpetrators in 85% of cases where  49% of them showed some behavior. For 14 months – the average time for occupational fraud to take place – before being detected, the perpetrators will usually display certain red flags. Apart from personal life, red flag behavior is also shown by the perpetrators at work. Still from the same results of the survey report, here are some red flag behavior at work that was found in 52% of cases:

  • Unusual proximity to vendors or consumers.
  • Tendency to control problems individually and not share the problem with subordinates or other superiors.
  •  Heightened anger, suspicious, and defensive behavior.
  • The ‘wheeler-dealer’ attitude is an aggressive, cunning, or immoral method of managing a business.
  • Complaints about salaries that are not according to their desire.
  • Refuse to take their vacation leave.
  • Pressing the company too much.
  • Having problems with the workplace or previous workplace.
  • Complaints about authority.

While employees need to recognize and understand these red flags, they also need the company’s support to report the red flags. The faster the potential for fraud is detected, the smaller the potential loss.

Integrity Indonesia has been trusted by clients to provide the Canary Whistleblowing System service which is an early detection tool for fraud. The Canary WBS allows for the safe reporting of violations with the choice of anonymity. 

Besides providing a reporting channel, we also assist our clients in the education of their employees by holding training sessions. For more information about the Canary WBS services and other compliance services, contact us today.

Also Read:

Fraud Detection: 41% of Fraudsters Exhibit Behavioral Red Flag ‘Living Beyond Means’

The Whistleblowing System in Preventing Financial Statement Fraud

Executive Fraud Causes the Biggest Loss for Companies


Written by: Aqilla N

Photo by Annika Ibels on Unsplash

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