Behavioral Red Flags of Fraud

Fraud isn’t always discovered through spreadsheets—it’s often revealed through behavior. Over the years, certain red flags consistently show up in cases of embezzlement, financial misconduct, and hidden asset schemes.

The Association of Certified Fraud Examiners (ACFE) compiled decades of case data into a clear visual guide showing the most common behavioral red flags found in fraud investigations.

You can view the full infographic here: Behavioral Red Flags of Fraud – ACFE 2020 Report to the Nations (PDF)

Top Warning Signs Include:

• Living beyond one’s means

• Financial difficulties

• Unusually close relationships with vendors or customers

• Control issues or unwillingness to share duties

• Irritability, defensiveness, or suspicious behavior when questioned

These signs don’t prove fraud—but they’re worth investigating if the numbers also stop adding up.