1. Rarely takes holidays
Whilst not taking holidays initially appears an HR or wellbeing issue, it is worth considering that this could be an indicator that an employee does not wish to leave his/her work open to the scrutiny of colleagues in his absence.
2. Refuses or does not seek promotion or rotation and gives no reasonable explanation
Career progression or work rotation is highly desirable for the majority but if an employee refuses this on more than one occasion, it could be an indicator that something is going on under the radar so to speak. Management must take the time to understand how their employees work with others in the department, if an employee insists on working in isolation when this is not always appropriate, this could be a warning sign.
3. Is suspected to have over-extended personal finances or excessive lifestyle
Greed is one of the key motivations to committing fraud. Management should be alert to the fact that overnight inheritances, newly established opulent lifestyles and excessive personal expenditure may all point to fraudulent behaviour. The recent case of a former secretary who embezzled half a million pounds from a company to spend on private jets, luxury cars and Premier League football tickets is just one such example.
4. Defensive mechanisms
Whilst this is a slightly contentious area, managers should be able to use their best judgement. There have been many cases of employees inventing illnesses as a mechanism to act as a buffer to challenge. If an employee is creating defence mechanisms to prevent questioning over transactions or performance, there may be reason to be extra vigilant. This is particularly the case where answers to straightforward questions are ever changing and inconsistent.
5. Senior managers with unusual spheres of influence
When the CFO banks cash takings or a senior manager is involved in purchasing decisions outside of his function, ask the question: why? In relation to the first of these it is important that all businesses can trace all fund inflows from source to bank with appropriate segregation of duties.
6. Expenses, expenses, expenses…
Several recent stories have appeared of significant expenses frauds. They are also a good indicator of an employee’s honesty: many fraudsters overstate their expenses in addition to their main crime. Use of data analytics over expenses is to be encouraged; looking for perennial over-spenders or spikes in claims.