Fraud literature suggests that the presence or absence of fraudulent intentions can be assessed by a close scrutiny of human behaviour. This can help identify prospective fraud perpetrators. Given this consideration, the present study qualitatively explores the observations and views of people who have personally investigated or closely observed a fraud/fraudster.
Twenty-six interviews help condense a checklist of behavioural red flags of fraud. The themes of strong ambition, social aloofness, extended working hours, dissatisfaction with current job, justifying unethical behaviour, personal problems and living standard disproportionate to current means are central to the articulations of the experiences of the respondents. Findings of the study have been integrated with the theory of the fraud triangle.
This research displays the complementarity between a primary data based ex-post analysis of the behaviour of fraud perpetrators and existing literature on the subject. The results are likely to help improve professional standards related to frauds, both from an organizational and regulatory perspective.
- Behavioural Red Flags of Fraud— A Qualitative Assessment door Namrata Sandhu in Journal of Human Values