Enhancing fraud prevention and detection by profiling fraud offenders

Kapardis, Andreas; Krambia‐Kapardis, Maria

doi:10.1002/cbm.586

Cited by 20 publications

(10 citation statements)

References 15 publications

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“…It is noteworthy that the vast majority of frauds in our interview set were uncovered through the action of a whistle‐blower. This finding, which is consistent with a number of prior survey‐based studies (ACFE ; KPMG ; Ernst & Young ; Kapardis and Kramiba‐Kapardis ), highlights the importance of social connections for fraud detection. This may be particularly related to the notion of plea bargaining in the United States, whereby individuals seek clemency in sentencing through cooperation with authorities.…”

Section: Discussionsupporting

confidence: 90%

The Ties that Bind: The Decision to Co‐Offend in Fraud

Free

Murphy

2014

Contemporary Accting Res

132

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It is frequently observed that fraud has a greater economic impact on society than any other category of crime. Arguing that both research and practitioner frameworks in auditing and forensic accounting have tended to adopt an individualizing perspective predicated primarily on solo offending, this article adopts an inductive approach to consider why individuals co‐offend in fraud. It reports the results of a set of interviews with 37 individuals convicted of a range of frauds including financial statement fraud, insider trading, credit card fraud, money laundering, and asset misappropriation. In each instance, the fraud was perpetrated by a group of two or more co‐offenders. Based on inductive, exploratory case coding, we find that reasons for co‐offending vary according to the type of bond that exists between co‐offenders. Two dimensions of fraudulent co‐offending are identified—the primary beneficiary of the fraud and the nature of group attachment—to derive three distinct archetypes of bonds between co‐offenders: (1) individual‐serving functional bonds, (2) organization‐serving functional bonds, and (3) affective bonds. Key elements of each archetype as well as their impact on the decision to co‐offend are examined. Our findings suggest that the social nature of fraud is not merely an incidental feature of the crime but is instead a potential key to understanding its etiology and some of its distinctive features. They also support the need for diagnostic tools to move beyond individualistic analyses of fraud toward a broader, group‐sensitive assessment of fraud risk.

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Section: Discussionsupporting

confidence: 90%

The Ties that Bind: The Decision to Co‐Offend in Fraud

Free

Murphy

2014

Contemporary Accting Res

132

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“…For example, Gill et al (1994) found 58 respondents in a survey of 638 people who completed a survey while travelling on a continental ferry admitted some form of insurance fraud and Dodd (1998) produced the only study which has sought to profile insurance fraudsters, but it is dated and based on only 209 claims (only 60 per cent of which were household). Indeed for fraud more generally there has only been limited interest in profiling fraudsters, which has tended to focus upon occupational fraudsters (Kapardis and Krambia-Kapardis, 2004;Bussmann and Werle, 2006; Association of Certified Fraud Examiners (ACFE), 2012; Warfield, 2012). This article will seek to start to fill that gap in research by offering findings from an analysis of over 30 000 dishonest household insurance claims that begins to offer insights on the profile of a household insurance fraudster.…”

Section: Introductionmentioning

confidence: 98%

‘All walks of life’: A profile of household insurance fraudsters in the United Kingdom

Button

Pakes

Blackbourn

2014

Secur J

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This article provides a profile of a household insurance fraudster based on an analysis of 33 189 dishonest household insurance claims identified by VFM Ltd (a claims handling company using conversation management as an investigative tool). Analysis of the dishonest claims showed marked differences in the profile of fraudsters to some of the published profiles of occupational fraudsters. There is greater gender equality and a wider range of occupations among insurance fraudsters with a peak age range in the 30-50 age groups. Claims made are also generally of low value, less than £500. This article offers insights on the goods claimed, the explanations offered and the seasonality of claiming behaviour. This article suggests household insurance fraud can be linked to Routine Activity Theory and that more research is needed to investigate this further.

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“…Hence, this makes it an ambiguous term to define. On this note, there exists no single legal definition of fraud which covers all possibilities (Kapardis & Krambia-Kapardis, 2004). Fraud is better understood when viewed from the criminological construct with potential legal repercussion that varies depending on where and how it is committed (Turvey, 2013).…”

Section: What Is Fraud?mentioning

confidence: 99%

Financial Statement Fraud: The Need for a Paradigm Shift to Forensic Accounting

Awolowo¹

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I hereby declare that: 1. I have not been enrolled for another award of the University, or other academic or professional organisation, whilst undertaking my research degree. 2. None of the material contained in the thesis has been used in any other submission for an academic award. 3. I am aware of and understand the University's policy on plagiarism and certify that this thesis is my own work. The use of all published or other sources of material consulted have been properly and fully acknowledged. 4. The work undertaken towards the thesis has been conducted in accordance with the SHU Principles of Integrity in Research and the SHU Research Ethics Policy. 5. The word count of the thesis is 78,332.

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Enhancing fraud prevention and detection by profiling fraud offenders

Abstract: The implications of the findings for fraud detection and prevention are discussed.

Cited by 20 publications

References 15 publications

The Ties that Bind: The Decision to Co‐Offend in Fraud

The Ties that Bind: The Decision to Co‐Offend in Fraud

‘All walks of life’: A profile of household insurance fraudsters in the United Kingdom

Financial Statement Fraud: The Need for a Paradigm Shift to Forensic Accounting

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