KNOW THE SIGNS OF DECEPTION TOP 10 SIGNS YOU ARE BEING LIED TO

KNOW THE SIGNS OF DECEPTION TOP 10 SIGNS YOU ARE BEING LIED TO

On average businesses lose 5% of their revenue to fraud every year, according to the 2012 Global Fraud Study, Report to the Nations on Occupational Fraud and Abuse. The study finds that occupational fraud increases as the size of the business decreases due to lack of anti-fraud controls, opening the door to misconduct. What s even more alarming, is that more than half of the businesses victimized never recover their losses. These losses are preventable for in many situations the act of fraud went undetected for more than 18 months. In the majority of cases, perpetrators of fraud displayed one or more behavioural red flags that are often associated with fraudulent conduct. One of the most prevalent indicators is lying. Whether it was deceptive employees or less than honest sales associates, we have all been lied to. And, while we may believe that we have the ability to tell a lie from the truth, research repeatedly shows that most of us make ineffective lie detectors. MNP s Brian Tario, Investigative and Forensics specialist, offers ten tips to help you decipher fact from fiction to further help you prevent fraud from occurring in your business. 1. TOUCHING THEIR FACE Touching the nose, ears or other body parts is a subconscious sign of deception. (See facial signals to tell if someone is lying below). 2. HEAVY BREATHING THROUGH NOSE Lying takes energy and the brain needs more oxygen to deal with the added pressure. 3. PAUSING/HESITATION A bad liar will stall as he/she needs time to think of a convincing story and avoid inconsistencies. 4. GIVING TOO MUCH DETAIL Liars often feel that if they provide an abundance of information then this will indicate they have nothing to hide. 5. LOOKING LEFT An inventive state will cause a liar s eyes to move to their right (your left) as opposed to a recall state which causes the eyes to shift to their left (your right). 6. OVERLY DEFENSIVE Denial of an accusation is to be expected; however, overstating one s defense repeatedly is cause for concern. 7. ADDING DISTANCE Crossing the arms or placing an object between the inquisitor and oneself is an attempt to create a comfortable distance. 8. SWEATING Sweating occurs in extreme cases of nervousness or when someone is under a great deal of pressure. 9. DEFLECTIVE Rather than asking why, a liar will commonly deflect attention to another scenario or accusation of someone else. 10. COMFORTING THEMSELVES Often a liar will physically comfort themselves by stroking their arm or leg.

FACIAL SIGNALS TO TELL IF SOMEONE IS LYING The four signals below in a lie face are not 100 percent accurate. It is possible for a good liar to prevent any of these signs when they are lying, especially when they have convinced themselves that they are telling the truth. But, by paying attention to how someone looks and sounds, as well as what they say, you can increase your chances of detecting a lie. Brian says the first clue that someone is lying is on their face. Although the image below is exaggerated, here are four facial signs that you are being lied to. 3 1 2 4 1. TOUCHING THEIR FACE Touching the nose, ears or other body parts is a subconscious sign of deception. 2. THE TRUTH IS IN THE EYE OF THE BEHOLDER When the brain is creating a picture the eyes instinctively move up and to their right (your left). This signifies access to the right hemisphere (creation) and visual cortex (pictures) of the brain and may signal that they are constructing a picture in their head. If someone is recalling a picture (remembering something that they actually saw) then they would look up and to their left (your right). 3. EYEBROWS RISING When we see a person s eyebrows rising towards the centre of the forehead (see arrow placement in the picture), it is typically a sign of fear. This sign can occur during or immediately after a lie and is a result of them being afraid that you will see through their deception. 4. LIPS TURNED DOWN Another sign of fear and lying is the sides of the lips turning down. The muscles that control this action are very specific and it is almost impossible to consciously activate them without activating any other lip-related muscles.

STRENGTHEN YOUR CASE AND REPUTATION BY KNOWING THE SIGNS Knowing the truth is an essential part of your success. Don t let fear, lies or omissions sabotage your achievements and reputation. Read the signs, so you get the whole truth and the facts the first time. MNP s Investigative and Forensic Services team provides litigation support, forensic accounting and investigative expertise to; lawyers, accounting firms, government bodies, financial services firms and the business community. For more information, visit MNPforensics.ca. INVESTIGATIVE & FORENSIC SERVICES Brian Tario, CFI is responsible for investigations in the area of due diligence and background inquiries, fraud, theft, secret commissions, foreign corruption, money laundering and the assessment of risk for client businesses across Canada. He is a former member of the Royal Canadian Mounted Police where he was involved in numerous national and international investigations involving money laundering, white collar crime, gambling, drugs, smuggling and the proceeds of crime. To decipher fact from fiction contact Brian at 1.877.500.0792 or brian.tario@mnp.ca.

ABOUT MNP MNP is one of the largest chartered accountancy and business consulting firms in Canada. For more than 65 years, we have proudly served and responded to the needs of our clients in the public, private and not-for-profit sectors. Through partner-led engagements, we provide a cost-effective approach to doing business and personalized strategies to help you succeed. Visit us at MNPforensics.ca Praxity, AISBL, is a global alliance of independent firms. Organised as an international not-for-profit entity under Belgium law, Praxity has its administrative office in London. As an alliance, Praxity does not practice the profession of public accountancy or provide audit, tax, consulting or other professional services of any type to third parties. The alliance does not constitute a joint venture, partnership or network between participating firms. Because the alliance firms are independent, Praxity does not guarantee the services or the quality of services provided by participating firms.