Fraud is estimated to be a multi-trillion-dollar problem — and this doesn’t even include undetected and unreported fraud. So how can senior leadership teams fortify their organizations against massive fraud schemes? By recognizing three archetypes of employees who commit fraud — intentional perpetrators, accidental perpetrators, and righteous perpetrators — leaders can spot red flags quickly in order to prevent future losses and reputational damage.
At the heart of the largest municipal fraud case in U.S. history lay a secret bank account, a prized stable of quarter horses, and a web of falsified invoices. Rita Crundwell, the former comptroller of the city of Dixon, Illinois, boldly siphoned off a staggering $53.7 million right under the community’s nose. This audacious act was facilitated by lax internal controls, complacency from the auditing firm, unsuspecting bank personnel, and a general lack of vigilance from city council members and residents alike for over 20 years.
