A couple of years ago the Australian Financial Review quoted Detective Superintendent Arthur Katsogiannis, then commander of the NSW Police fraud and cybercrime squad, in a story about corporate crime.
Superintendent Katsogiannis said that in 100% of corporate crime investigations he had been involved in, corruption goes hand-in-hand with a “compromised personal life”.
Gambling, drinking, drug taking, living beyond their means and inappropriate sexual conduct were all indicators of a personal life as compromised as the perpetrator’s professional life.
The article also cited research by the Association of Certified Fraud Examiners (ACFE), the world's largest anti-fraud organisation, which publishes the biennial Report to the Nations on Occupational Fraud and Abuse.
The following infographics were published in the ACFE's 2018 report to help business owners and managers recognise the red flags of occupational fraud.
So what can you do about it?
The checklist is designed to help you consider and test the effectiveness of your organisation’s fraud prevention measures.
For more information about employee fraud, take a look at our 2016 eBook: Employee fraud: 15 strategies to reduce the risk.
If you would like support to develop a sound business culture and operational practices and checks that will underpin a fraud prevention strategy for your business, contact the team at JPAbusiness on 02 6360 0360 (Orange) or 02 9893 1803 (Parramatta) for a confidential discussion.
James Price has over 30 years' experience in providing strategic, commercial and financial advice to Australian and international business clients. James' blogs provide business advice for aspiring and current small to mid-sized business owners, operators and managers.