Seeing Red Again: Behavioral Indicators of Fraud FLEXCAST

Overview

The ACFE, the Association of Certified Fraud Examiners, reports that there are eight main behavioral indicators of fraud, often called red flags. 84% of fraudsters exhibited at least one of the behavioral indicators prior to being caught. Having an understanding and being on the lookout for these behavioral indicators can lead to more fraud being uncovered more often. Internal audit only uncovers about 14% of frauds and external audit only 3%. While detecting fraud is not internal audit’s primary purpose, knowing the behavioral indicators can lead to early detection and a decrease in damages from fraud schemes. In this course, the student will learn about the eight behavioral indicators of fraud per the ACFE’s 2024 Report To The Nations. Additionally, search tips including Open Source Intelligence (OSINT) collection tips are included after each one of the red flags. Additionally, students of this course will learn about the change over time for the red flags of fraud.

Highlights

The eight behavioral indicators of fraud.

Prerequisites

None.

Designed For

CPAs and auditors.

Objectives

Identify and explain the eight behavioral indicators of fraud as outlined in the ACFE’s 2024 Report to the Nations, understanding their significance in early fraud detection. Apply Open Source Intelligence (OSINT) collection techniques to investigate potential fraud indicators in real-world scenarios. Analyze how behavioral red flags of fraud have evolved over time and evaluate their current relevance in modern fraud schemes. Develop enhanced fraud detection skills that complement traditional audit approaches, potentially increasing fraud detection rates beyond the current 14% for internal audit and 3% for external audit.

Preparation

None.

Notice

This is a FlexCast (no exam required) and may be viewed only Monday - Saturday, 5am - 5pm PT. You may take up to one year from the date of purchase to complete the course. Pause your FlexCast and resume at a convenient day during the hours above. Partial credit for 2+ credit courses: If you are unable to complete the course in one sitting, partial credit can be awarded (minimum of one credit). To earn the remaining credits, you must return later and start the course from the beginning. Use chat to ask questions of a subject matter expert during the program.