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Tips for spotting red flags of white-collar fraud at work

On Behalf of | Dec 13, 2023 | White Collar Fraud

In the professional realm, white-collar fraud can cast a shadow on the integrity of any workplace.

Identifying red flags early on helps maintain a healthy work environment and protects both you and the organization.

Inconsistencies in financial records

In May 2021, the government prosecuted 319 white-collar crimes according to the Transaction Records Access Clearinghouse. One of the telltale signs of white-collar fraud is irregularities in financial records. Watch for discrepancies between reported profits and actual financial performance as well as disproportionate or unjustified expenses.

Unusual behavior in colleagues

Pay attention to changes in behavior among your colleagues. Sudden, unexplained shifts in lifestyle, such as lavish spending or an uncharacteristic display of wealth, could be indicative of white-collar fraud. Report any notable changes to your superiors.

Reluctance to share information

Fraudsters often guard their activities zealously. If you notice a colleague hesitating to share information about their work or projects, it may be a red flag. Open communication is important in a professional setting and a lack of transparency can be a warning sign.

Unexplained vendor relationships

Fraudulent activities can involve fictitious vendors or suppliers. Watch for any unexplained or dubious relationships with vendors. Verify the legitimacy of such connections to ensure they are not a cover for fraudulent transactions.

High employee turnover in key positions

Frequent turnover in key positions, especially in finance or accounting roles, can be a red flag. Fraudsters may manipulate their colleagues or subordinates, leading to a revolving door of personnel.

To catch any fraudulent activities early, remain vigilant and observe the activities in your organization.