Internal fraud rarely appears as a single dramatic event. It shows up first as a pattern of small operational drifts that, in isolation, look explainable. Boards and audit committees that recognise the drifts early lose less, recover more, and avoid the reputational tail.
Behavioural warning signs
- A single individual unwilling to take leave or rotate duties.
- Vendor concentration around one approver or one sponsor.
- Lifestyle changes inconsistent with declared compensation.
- Resistance to control changes or audit access.
Process warning signs
- Unusual frequency of journal adjustments around period-end.
- Margin drift in a single business unit without a market explanation.
- Recurring small write-offs that fall just below escalation thresholds.
When to engage an investigator
Before disciplinary action, not after. Early discreet verification preserves both the evidence and the option set.
FraudInternal ControlsAudit
