Abstract:

Employee fraud is the most common type of fraud globally and is common offense. Therefore, employee fraud must be uncovered and punished. However, it is challenging to detect and prove an act carried out in secret to conceal fraud. In this respect, it is significiant to work to prevent fraud or to catch it as soon as possible. According to the "Fraud Diamond" model, one of the theories developed within the scope of combating fraud, four elements consisting of motivation, opportunity, rationalization and competence must come together for fraud to occur. According to the fraud prevention approach, potential fraud possibilities should be considered and action should be taken before these elements occur. An effective fight against fraud is working to minimize the risk of fraud with proactive methods. Among the proactive methods, “Red Flags” are defined as indicators pointing to the risk of fraud. The frequency of these symptoms indicates the high risk of cheating and the presence of cheat tile elements. Red flags are used as an effective tool in the fight against cheating to prevent the formation of cheat tile elements that constitute a basis for cheating. This study, aimed to contribute to the effectiveness of proactive methods used in the fight against employee fraud and to help understand the importance of monitoring red flags and cheat tile components together. For this purpose, red flags specific to employee cheating compiled from current reports of international organizations were examined within the framework of cheating tiles. In the study, it has been determined that which red flags specific to employee fraud are associated with cheat tile elements. A guideline compilation that can help businesses and institutions fight fraud effectively is presented.

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