The global prototype of a company fraudster is a man from senior management, aged 36 - 45, who works in the finance department and has been in the company for more than ten years. At least that’s how he was portrayed by last year’s research effort called Who is the typical fraudster – KPMG Analysis of global patterns of fraud. This research analyzed 348 real cases of fraud that offices of the KPMG consulting company handled for their clients in 69 countries.
The research showed that in 90% of cases it is men who are investigated for fraud. Especially the number of representatives of senior company management is growing. On average, it takes three years before their fraudulent conduct is exposed. In 61% of cases, the fraudster does not act alone. His main helpers are suppliers (48%) and customers (22%). In the Czech Republic, the largest number of fraudsters is in the purchasing and sales department, where they have worked for three or more years. In 52% of cases, it takes more than three years to expose them.
So how can you recognize a fraudster at your work place? KPMG described the following warning signs.
1. The person in question does not take vacations
2. He is not interested in promotions, rotations or any other career growth opportunities in the company and is unable to explain why.
3. He has high personal expenditures or a demanding lifestyle.
4. He builds defense mechanisms against questions related to transactions and performance.
5. He is a senior manager with unusual spheres of influence.
6. He exaggerates his expenses.
7. He manipulates financial results in order to improve, on paper, the performance of his business unit.
8. Whereas the revenues and profits of other companies in your industry are declining, he claims that you are doing great.
9. He avoids delegating his functions and work activities, for example via an audit.
10. He manipulates the accounting records.
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