What does a Fraudster Look Like?

In my last post, I discussed simple ways to deter fraud. But how do you know if someone is up to no good?

There are 5 basic ways to describe a fraudster.

  1. Perpetrators look like you and me. In other words, there is no specific “look” to a fraudster. One “look” that is common though, is they are living beyond their means. I’ll post about this and more next time.
  2. There is no specific psychological profile. We are all capable of committing fraud.
  3. Fraudsters tend to be male (67%). In the United States, fraudsters still tend to be male (55%) but that gap is closing.
  4. Upper management. The employees in upper management have the ability to circumvent internal controls. For example, a high ranking executive of a company can manipulate their staff to sign off on an expense report that has personal expenses on it. Especially if the staffer is a younger (less experienced) person.
  5. Tend to be more religious. At a fraud training I attend, the reason stated was a religious person is perceived to have a higher ethical and moral code. Therefore, they are viewed as trustworthy and not questioned.

So there isn’t a simple profile. A fraudster, in a nutshell, doesn’t come down to a profile, rather it is the sex, drugs (or other addictions), and rock-n-roll lifestyle. These “activities” all cost money and fraudsters need the cash to support the lifestyle they think they have earned or deserved.

What are your thoughts on the look of a fraudster?