Report Details Typical Fraudster Profile in an Organization
- High-level perpetrators cause the greatest damage to their organizations.
- Frauds committed by owners/executives were more than three times as costly as frauds committed by managers, and more than nine times as costly as employee frauds.
- Executive-level frauds also took much longer to detect. Fraud offenders were likely to be found in one of six departments.
- More than 80 percent of the frauds in the study were committed by individuals in accounting, operations, sales, executive/upper management, customer service or purchasing. More than half of all cases in the study were committed by individuals between the ages of 31 and 45.
- Generally speaking, median losses tended to rise with the age of the perpetrator. Most of the fraudsters in the study had never been previously charged or convicted for a fraud-related offense. Only seven percent of the perpetrators had been previously convicted of a fraud offense. This finding is consistent with prior ACFE studies.
- Fraud perpetrators often display warning signs that they are engaging in illicit activity. The most common behavioral red flags displayed by the perpetrators in our study were living beyond their means (43 percent of cases) and experiencing financial difficulties (36 percent of cases).