- Many cases of the most serious frauds and corruption are committed by the people at the top who have the power to conduct fraudulent transactions and cover them up.
There are several things which suggest someone is abusing their position and could actually be committing fraud. Things to watch out for:
- It seems too good to be true
The number one rule is that if it seems too good to be true, it probably is. Don't take deals, or people, on face value if something doesn't add up.
- "We should do things my way"
When it's out with the old rules and laws on compliance and accounting and in with newer questionable methods.
- The mentality of "just this once" or "but everyone else does it"
These excuses never justify doing things that are against internal policies or the law.
- Management telling you that it is ok to do something (because their accountants and lawyers say it is ok) but you think that it may be wrong
Make sure there is a proper audit trail and don't be scared to double check.
- Using company assets for personal reasons
- Conflicts of interest which you think might compromise an individual's position and actions.