What kinds of companies are more prone to fraud?
In my business, we talk a lot about the red flags of fraud. There are two different types of red flags: the kind that suggest that a fraud is currently in progress, and the kind that puts a company at greater risk of fraud.
In this video, I talk about a few of the characteristics of companies that seem to put companies in greater danger of becoming a victim of fraud by employees. Some of these red flags include:
- Executives act autonomously
- Authority is not delegated
- Distrustful management
- Management driven by the pursuit of power