Behavioural Red Flags of Fraud— A Qualitative Assessment

Sandhu, Namrata

doi:10.1177/0971685816650579

Cited by 28 publications

(32 citation statements)

References 35 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Although few studies report social isolation as a red flag of fraud (ACFE, 2014, 2016; Morales et al, 2014), others report some exceptions. A recent study indicates that fraud perpetrators typically placed in upper management positions are outgoing, popular and extremely social (Sandhu, 2016). Further, the data indicate that 29.3 per cent of fraud perpetrators were dissatisfied with their current jobs.…”

Section: Resultsmentioning

confidence: 99%

“…Refusing promotions/postings/leave was identified as a red flag in 12.2 per cent of cases. It is believed that the extra income from fraudulent activities encourages fraudsters to refuse lucrative professional opportunities (Sandhu, 2016). Some literature also documents instances of executives, later booked for fraud, operating much below responsibility levels for a significant period of time before the fraud was exposed (Coenen, 2008; Singleton & Singleton, 2010).…”

Section: Resultsmentioning

confidence: 99%

See 1 more Smart Citation

Behavioural Red Flags of Fraud: An Ex Post Assessment of Types and Frequencies

Sandhu

2019

Global Business Review

Self Cite

View full text Add to dashboard Cite

A number of researchers and professional fraud examiners have emphasized the need for early detection of frauds. Though there are many ways in which frauds can be detected, a particularly effective and inexpensive way is to identify fraudsters by scrutinizing personnel behaviour for peculiarities typical of fraudsters. Towards this end, the present study compiles a checklist of behavioural red flags of fraud based on data collected with the help of 41 semi-structured interviews. The interviewees constitute people who have personally investigated or closely observed a fraud in the last 3 years. A mixed methods triangulation approach is used to quantify the qualitative data collected from the interviews. Data analysis reveals 16 different behavioural red flags exhibited by fraudsters. An examination of frequencies indicates that strong ambition, extended working hours, social aloofness, dissatisfaction with current job and living standard disproportionate to current means are the most frequently displayed behavioural red flags of fraud. The study also shows that fraudsters exhibit three or four behavioural red flags in a majority of cases. Implications for anti-fraud practitioners are discussed.

show abstract

Section: Resultsmentioning

confidence: 99%

Section: Resultsmentioning

confidence: 99%

Behavioural Red Flags of Fraud: An Ex Post Assessment of Types and Frequencies

Sandhu

2019

Global Business Review

Self Cite

View full text Add to dashboard Cite

show abstract

“…Behavioural factors have been recognised as the reason why fraud take place (Cressey, 1950;Dittenhofer , 1995;Sandhu, 2016). The 10/80/10 principle has been used in fraud prevention circles to assess the chances of fraud taking place (Buchanan-Cook, 2006).…”

Section: Behavioural Factorsmentioning

confidence: 99%

Financial Statement Fraud: The Need for a Paradigm Shift to Forensic Accounting

Awolowo¹

View full text Add to dashboard Cite

I hereby declare that: 1. I have not been enrolled for another award of the University, or other academic or professional organisation, whilst undertaking my research degree. 2. None of the material contained in the thesis has been used in any other submission for an academic award. 3. I am aware of and understand the University's policy on plagiarism and certify that this thesis is my own work. The use of all published or other sources of material consulted have been properly and fully acknowledged. 4. The work undertaken towards the thesis has been conducted in accordance with the SHU Principles of Integrity in Research and the SHU Research Ethics Policy. 5. The word count of the thesis is 78,332.

show abstract

“…They found that red flags vary in effectiveness; specifically, opportunity red flags were identified by the external auditors as most significant in detecting fraud. To explore behavioral red flags, Sandhu [40] interviewed 26 individuals who had been personally involved in either a fraud investigation or a fraud observation. Interviewees highlighted the following behavioral characteristics as red flags: strong ambition, social aloofness, extended working hours, dissatisfaction with the current job, justification of unethical behavior, personal problems, and living standards disproportionate to current means.…”

Section: ) Detection Metrics For Possible Fraudmentioning

confidence: 99%

A Systematic Literature Review of Fraud Detection Metrics in Business Processes

Omair

Alturki

2020

IEEE Access

View full text Add to dashboard Cite

Fraud is a primary source of organization losses, amounting to up to 5% of yearly revenues. Process-based fraud (PBF) is fraud involving a deviation from the standard operating procedure (SOP) of business processes. PBF hinders the achievement of business objectives because business processes operationalize organizational strategies. A systematic content analysis of the literature was conducted on fraud detection metrics in business processes. The current state of fraud detection was surveyed by focusing on PBF metrics while including all relevant conceptual perspectives of PBF detection. The findings indicate that a large body of research has examined detection metrics for possible fraud, but less attention has been paid to PBF. In addition, the currently available PBF detection metrics do not adequately address the needs of different conceptual perspectives on business processes. For example, metrics may be undefined for one or more of the following: components of a business process, business process perspectives, critical information for auditing the business process, and business process presentation layers. This paper addresses these gaps by paying attention to PBF and various conceptual perspectives for a successful PBF detection approach. INDEX TERMS Business process fraud, fraud detection, fraud indicators, fraud metrics, process-based fraud, systematic literature review.

show abstract

Behavioural Red Flags of Fraud— A Qualitative Assessment

Cited by 28 publications

References 35 publications

Behavioural Red Flags of Fraud: An Ex Post Assessment of Types and Frequencies

Behavioural Red Flags of Fraud: An Ex Post Assessment of Types and Frequencies

Financial Statement Fraud: The Need for a Paradigm Shift to Forensic Accounting

A Systematic Literature Review of Fraud Detection Metrics in Business Processes

Contact Info

Product

Resources

About