Anyone…at least that is how one should think when analyzing fraud risks.

Fraud is a hot topic. If you don’t think so ask someone who used to work for Enron or invested in Madoff’s investment company - they might change your mind. Because of instances like these, people often think of fraud in large terms, and the mention of the word carries a lot of weight. But fraud can occur in all sizes and forms.

Who is likely to commit fraud? Most people use what is commonly known as the fraud triangle to identify areas where one can commit fraud. The three criteria are Pressure/Incentive, Opportunity, and Rationalization.

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The 2008 Report to the Nation is a report issued by the Association of Certified Fraud Examiners that discusses who commits fraud and the most common ways that they do it. Fraudsters are generally 40 to 60 year old executives or accountants. The study showed that as incomes and education levels increased the instances of fraud decreased, but the dollar value increased. Additionally, in a majority of the fraud cases there was only one person involved in the scheme and it was their first offense.

Common indicators of fraud are employees living beyond their means or experiencing financial difficulties.

Take a look around your office, do you see anybody that fit this description? Keep your ears and eyes open and establish a whistleblower policy providing procedures of investigation and protection.