A version of this article first appeared in Ocean Road Magazine
There is a reason deception so often relies on distraction.
Even a brief lapse in attention can create an opening, not just for a magician’s illusion, but for misconduct in the corporate world. In fraud and financial crime, distraction is a familiar tactic, and those who use it well can operate undetected for long periods of time.
The most effective fraudsters rarely rely on complexity alone. More often, they rely on people and on the trust, assumptions and human dynamics that exist inside every organisation.
With the advent of new technologies and increasingly blurred personal and professional boundaries, these risks have only become more pronounced. Whether we like it or not, humans remain vulnerable to influence, persuasion and emotional blind spots, particularly when trust and companionship are involved.
Sometimes, the smallest personal connections can create the largest control gaps.
Case example: Executive misconduct driven by emotional entanglement
I was recently asked to examine a company experiencing substantial cost leakage and unexplained expenditure, much of it attributed to the CEO and executive team.
As we do, my team and I began by examining the detail: aligning spending chronologically to events, corporate travel, entertainment, and other legitimate business activity. Good investigative work starts with building a clear timeline and grounding conclusions in evidence.
Once the timeline was established, we were able to identify patterns that did not align with reasonable company spending.
The evidence pointed to a series of significant events that began not with an obvious fraud indicator, but with a personal relationship.
What emerged was a sustained fraud enabled by access, influence and weak oversight.
The individual at the centre of the matter used their position of trust and authority to manipulate internal financial systems and processes. Over time, they were able to systematically divert funds through improper payments and arrangements that were hidden within normal business operations.
They also drew others into the scheme, not necessarily through technical sophistication, but through persuasion and the gradual erosion of controls.
Innocent participants can pay a high price, not only financially, but emotionally. As one person involved reflected:“I will never trust anyone ever again. I was in love.”
Behavioural risk is not gendered, but it is real
Deceptive behaviour is not confined to any one profile or demographic, although in my experience it is often enabled by power imbalances and organisational hierarchy.
Case example: Seduction, access control failure, and multi‑system fraud
In this case, the scheme involved the exploitation of trust at senior levels, access to credentials and systems, and the creation of vendor accounts and payment instructions that allowed money to flow out of the business over time.
The conduct was not detected immediately because it was embedded within relationships, routines and assumptions, the very areas where organisations are often least prepared to apply scrutiny.
As we commenced a formal investigation, we uncovered substantial electronic communications, financial records and supporting evidence indicating that this was more than an isolated incident.
We then completed a full financial review and a series of interviews, which ultimately led to the unravelling of a multi-million-dollar fraud scheme over a period of more than a year.
Those involved were removed from their roles, and the matter progressed through the appropriate legal channels.
A practical question for leaders
Like most things in life, the earliest warning signs are often subtle.
In matters where trust, influence and emotion intersect with financial authority, people can find themselves too far along before they stop to ask the difficult but necessary questions:
- Is this appropriate?
- What am I authorising?
- What are the consequences?
- Where are the controls?
In my experience, it is often these human dynamics, more than the numbers themselves, that determine whether fraud is detected early or allowed to grow.
If you have concerns about how trust, relationships, or internal dynamics may be affecting the integrity of your organisation, our team can help you gain clarity. We work with discretion and precision to identify vulnerabilities, assess potential misconduct, and strengthen controls so you can move forward with confidence.
