Which of the following is an indicator of possible fraud activity in an employee?

The identification of potential fraud activity often hinges on behavioral indicators that suggest a change in an employee's conduct or mindset. A disgruntled employee nearing retirement may exhibit signs of dissatisfaction or bitterness towards their employer, leading them to consider unethical actions, including fraud.

This situation can create a perfect storm where the employee feels undervalued or mistreated, coupled with a sense of urgency to maximize their benefits before leaving the organization. Such psychological triggers often drive individuals to engage in fraudulent behavior, as they might justify their actions as a form of compensation for perceived grievances.

On the other hand, stable attendance, healthy work-life balance, and frequent praise are generally indicative of engaged employees, and do not raise immediate red flags regarding fraud risks. In contrast, the discontent that often comes with an employee nearing retirement, especially if they feel slighted in some way, can be a significant red flag suggesting potential wrongdoing.