Why executives pose the greatest occupational fraud risk

Business owners and executives commit only 19% of all occupational fraud, but they cause a median loss of $850,000, vs. $100,000 for regular employees. So spotting red flags is critical. Crooked executives may be reluctant to cooperate with internal investigations, outside auditors and regulators, and may become agitated or annoyed when probed about financial discrepancies. Extravagant personal spending or debt problems can also be tip-offs. Weak internal controls make executive fraud easier to perpetrate. If you need help bolstering your controls, contact us.