Spire White Paper: Fraud Trends and Behavioral Insights for the Construction Industry

Fraud in the construction industry is rarely identified at the outset. More often, it surfaces only after budgets escalate, schedules slip, or disputes evolve into investigations. At that point, the central question shifts from prevention to detection: how did this happen without anyone noticing? 

The 2024 Association of Certified Fraud Examiners (ACFE) Report to the Nations shows that construction fraud is dominated by corruption at 52 percent and billing schemes at 38 percent, with a median loss of $250,000 per case. Actual exposure is often far greater when delays, litigation, reputational harm, and regulatory risk are considered. Some estimates suggest fraud, waste, and abuse may consume up to 10 percent of capital budgets. 

To better understand why certain individuals exploit complex project systems, Spire Foresnic Accounting & Fraud Advisory team introduces the Seduction of Fraud (SoF) methodology and its four-part Diamond: temptation, opportunity, entitlement, and boldness. This behavioral framework explains why two individuals facing the same circumstances may make very different choices, and how influence within trusted relationships can enable misconduct without overt coercion. 

Reducing fraud requires more than additional controls. It demands behavioral awareness, documentation focused skepticism, and strong speak up cultures. 

To learn more about the data, behavioral insights, and case study analysis, download the full white paper.