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Company Fraud are there signs?

By September 16, 2011February 19th, 2015No Comments

Can You Spot Someone Committing Fraud at Your Company?

Believe it or not, someone committing corporate fraud, or “cooking the books” is not that difficult to spot, once you know what to look for.  According to the studyWho is a Typical Fraudster? developed and based on analysis of corporate fraud by KPMG International’s member firms, “fraudsters”  typically meet the following critera:

  • 36-45 year old male in finance related role
  • 10+ years longevity with the company
  • Rarely takes vacations
  • May only want to work with certain vendors
  • Stressed-out most of the time

Also, their behavior is suspect:

  • They cut corners
  • They may have poor performance or make mistakes
  • They tend to hire “Yes men” who will go along with whatever they say or do
  • They seem to live well beyond their means
  • They may exhibit signs of alcohol or substance abuse

Although this information is designed to give you an overview of someone most likely to commit fraud, it’s imperative that you refrain from profiling.   HR execs must take measures to protect not only the company, but the employee.

During the hiring process please make sure you perform a background check on the people you hire, often times there can be a history in their past that might demonstrate some or all of the following:

  • Criminal activity in the past
  • Financial trouble for late payments to vendors
  • Bankruptcy
  • Employer Lawsuits for Workers’ Compensation or an Employment Practice Lawsuit for Wrongful Termination

Checks and Balances in the workplace are vital to assist in prevention of fraud.  Always have a different person reviewing and balancing the checking accounts and monitor all cash and check writing capabilities.

For more comprehensive guidance on all things HR, contact HR Knowledge, Inc. at or call at 508-339-1300..