This document discusses fraud prevention. It identifies three types of fraudsters: those who always steal, never steal, and steal under perceived pressure. It then outlines the fraud triangle of pressure, opportunity, and rationalization. Several indicators of potential fraud are described, including lifestyle changes beyond one's means, certain personality traits, and behavioral changes like financial issues discussed at work. The document stresses establishing controls like segregating duties, implementing an escalation policy, and ensuring accountability and proper oversight to help prevent fraud.

1. Salih Ahmed İslam

2. • Understanding Profile of a Fraudster
• Identifying Indicators of Fraud
• Implementing Controls to Prevent Fraud

3. Legal:
”A knowing misrepresentation of the truth or
concealment of a material fact to induce
another to act to his or her detriment.”

4. Working:
A form of employee misconduct where an
employee uses deceit to take (steal) or
misuse an employer’s resources.

5. PEOPLE – 3 KINDS
• Always Steal
• Never Steal
• Steal Under Perceived Pressure
Donald Cressey
Sociology Professor
Subgroup of embezzlement felons in prison (exemplary
lives before – no prior criminal history)

6. Pressure
Rationalization
Opportunity
Capability
Pressure
Opportunity
Rationalization
Capability

7. 55.7% 44.3%

8. DEPARTMENT

9. Dimensions
Gender
Age
Position
Tenure
Department
Highest Frequency
Male
36 – 45 Years
Employee
1 – 5 Years
Accounting

11. LIFESTYLE CHANGES
• Expensive/multiple vacations
• Upgraded/expensive vehicles
• Upgraded clothing or style
• New level of donations or gifts
Living
Beyond
Means

12. LIFESTYLE CHANGES
• Multiple homes or renovations
• Upgraded personal grooming
• New business/investment
• Recreational activities
Living
Beyond
Means

13. COMMON PERSONALITY TRAITS
• Controlling/unwilling to share
duties
• Do not like their work being
reviewed
• Strong desire for personal gain
PERSONALITY
TRAITS

14. COMMON PERSONALITY TRAITS
• Controlling/unwilling to share
duties
• Unable to relax
• "Beat the system" attitude
PERSONALITY
TRAITS

15. COMMON BEHAVIOR CHANGES
• Brags about purchases
• Unusual amounts of cash in
possession
• Borrows money from coworkers
BEHAVIOR
CHANGES

16. COMMON BEHAVIOR CHANGES
• Collection calls at work
• Outside business calls at work
• Becomes irritable or moody
BEHAVIOR
CHANGES

17. COMMON BEHAVIOR CHANGES
• Territorial over responsibility
area
• Takes PTO in small increments
• Redoes or rewrites work to
"make it neat"
BEHAVIOR
CHANGES

18. COMMON BEHAVIOR CHANGES
• Unreasonably upset when
questioned about work
• Starts coming in early or staying
late
• Discusses/mentions family or
financial problems
BEHAVIOR
CHANGES

19. COMMON BEHAVIOR CHANGES
• Absenteeism
• Manipulative behavior
• Looks/acts ill
ADDICTION
FLAGS

20. COMMON BEHAVIOR CHANGES
• Illogical/inconsistent decisions
and actions
• Loss of sleep
• Loss of appetite
ADDICTION
FLAGS
ADDICTION FLAGS

21. COMMON BEHAVIOR CHANGES
• Frequent work issue complaints
• Decreased productivity
• Change in attire/grooming
• Irregular schedules
DISSATISFACTION

23. TONE AT THE TOP

24. DECISION RIGHTS
Authority Responsibility
COMPETENCY

25. SEGREGATION OF DUTIES

26. SEGREGATION OF DUTIES (Cont.)

27. SEGREGATION OF DUTIES (Cont.)
**With separate/extra management review

28. 1. Assists employees with their reporting of incidents, events, conditions
2. Ensures proper evaluation and escalation
3. Identifies incidents, events or conditions
• external or internal
• not contemplated by existing policy, procedure, or guidance
ESCALATION POLICY

29. ACCOUNTABILITY