What kinds of companies are more prone to fraud?

In my business, we talk a lot about the red flags of fraud. There are two different types of red flags: the kind that suggest that a fraud is currently in progress, and the kind that puts a company at greater risk of fraud.

In this video, I talk about a few of the characteristics of companies that seem to put companies in greater danger of becoming a victim of fraud by employees. Some of these red flags include:

• Executives act autonomously
• Authority is not delegated
• Distrustful management
• Management driven by the pursuit of power