” WHO IS A TYPICAL FRAUDSTER ? -ANSWER FROM NETHERLANDS

Many of us ask this type of question and many more wonder why with the available strict financial rules and Accounting code of conducts, still white color fraud is high and increasing.
The answer to such questions may be found from KPMG international office in Netherlands.
According to KPMG's global analysis of fraud trends, the following are key characters that many fraudster have:-
Male • 36 to 45 years old • Commits fraud against his own employer • Works in the fi nance function or in a fi nance-related role • Holds a senior management position • Employed by the company for more than 10 years •Works in collusion with another perpetrator

To read the whole KPMG report, Click here  but here are some highlights for you:-


SEVEN FRAUD RED FLAGS:

1. A business unit thrives despite competitors struggling with declining sales and/or profits.
2. Excessive pressure exists on senior managers and employees to achieve unusually tough profit targets and business goals.
3. Complex or unusual payment methods and agreements occur between the business and certain suppliers/customers.
4. The business may have multiple banking arrangements, rather than one clear provider—a possible attempt to reduce transparency over its finances.
5. The business consistently pushes the limits and boundaries regarding matters of financial judgment or accounting treatment.
6. There is excessive secrecy about a function, its operations and its financial results, and the unit is not forthcoming with answers or supporting information to internal inquiries.
7. Increased profitability fails to lead to increased cash flows.

EIGHT FRAUDSTER TRAITS:

1. Volatility and being melodramatic, arrogant and confrontational, threatening or aggressive, when challenged.
2. Performance or skills of new employees in their unit do not reflect past experiences detailed on resumes.
3. Unreliability and prone to mistakes and poor performance, with a tendency to cut corners and/or bend the rules, but makes attempts to shift blame and responsibility for errors.
4. Unhappy, apparently stressed and under pressure, while bullying and intimidating colleagues.
5. Being surrounded by “favorites,” or people who do not challenge the fraudster, and micromanaging some employees, while keeping others at arm’s length.
6. Vendors/suppliers will only deal with this individual, who also may accept generous gestures that are excessive or contrary to corporate rules.
7. Persistent rumors or indications of personal bad habits, addictions or vices, possibly with a lifestyle that seems excessive for their income, or apparently personally over-extended in their finances.
8. Self-interested and concerned with their own agenda, and who has opportunities to manipulate personal pay and rewards.                                                                                                           Have a say ? please comment or write to us at: john.myungire@gmail.com