The Importance of Fraud Awareness Week

Fraud Awareness Week was established by the Association of Certified Fraud Examiners as a campaign to encourage business leaders and employees to proactively take steps to minimize the impact of fraud by promoting anti-fraud awareness and education.

Organizations worldwide lose an estimated 5 percent of their annual revenues to fraud, according to the 2016 ACFE Report to the Nations on Occupational Fraud and Abuse. Fraud takes many shapes and forms, among them corporate fraud, consumer fraud, tax fraud, identity theft and many others. Occupational fraud occurs when someone uses their occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets.

Fraud is often seen as a cold crime against organizations. It is important to remember, however, that there are real people who suffer due to the actions of fraudsters. Whether it is a small business owner who must close the doors on their dream because they fell victim to embezzlement or a loyal worker who lost his or her pension thanks to the unscrupulous acts of an employee, behind every fraudster, there are real victims.

Why Fraud Awareness Week Matters to Wickes

I participate in Fraud Awareness Week because I often find when I’m investigating an employee embezzlement matter that there have been indications of fraudulent activity the co-workers and supervisors did not recognize. That is why when I am asked to present on the topic of fraud, I usually cover the red flags of fraudulent employee activity; in hopes that I can help organizations identify suspicious behaviors and uncover fraud sooner.

Top ten most common red flags displayed by perpetrators:

1. Living beyond means
2. Financial difficulties
3. Unusually close association with vendor/customer
4. Wheeler-dealer attitude
5. Control issues, unwillingness to share duties
6. Divorce/family problems
7. Irritability, suspiciousness, or defensiveness
8. Addiction problems
9. Complained about inadequate pay
10. Refusal to take vacations

With more than 20 years of experience, I effectively conduct fraud investigations for companies, not-for-profits, and governments and provide recommendations to improve fraud prevention and detection. Recently, the results of one of my fraud investigations were utilized by the Saratoga County District Attorney for a $500,000 grand larceny case. Read the full article here.

Wickes Forensic Accounting and Consulting, LLC supports Fraud Awareness Week because, with education and anti-fraud awareness, fewer businesses will find themselves affected by fraud.

To learn more about Fraud Awareness Week, click here.