Profiling The Fraudster E-Book

Simon Padgett

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: Wiley Corporate F&A
• Sprache: Englisch

Seitenzahl: 363

Veröffentlichungsjahr: 2014

Beschreibung

Detect and combat corporate fraud with new profilingtechniques Profiling the Fraudster: Removing the Mask to Prevent andDetect Fraud takes a step-by-step approach beyond the FraudTriangle to identify characteristics in potential fraudsters,employees and new hires that will sound alarm bells before they gettheir hands on your organization's assets. The typical organizationloses a staggering 5% of its annual revenue to fraud. Traditionalfraud investigations focus on the breakdown of internal controlsbut what happens when the human beings forming a key component ofthat chain of control are inherently dishonest? This book shows youhow to recognize the characteristics and behavioral patterns ofpotential fraudsters who are entrusted with safeguarding corporateassets. The book includes: * An in-depth look at fraud investigation techniques and howthese can be enhanced by using the characteristics of fraudulentbehavior, * A detailed look at profiling potential perpetrators offraud, * A detailed breakdown of how to compile a fraud profile, * A discussion of a wide range of organizational fraud, includingabuse of power, embezzlement, computer fraud, expense abuse, andmore, * Tables, illustrations, and diagrams to enhance thenarrative If you're a corporate fraud investigator, auditor, forensicaccountant, law enforcement professional, or anyone challenged withsafeguarding your organizations assets--Profiling theFraudster shows you how to remove the mask and prevent anddetect fraud.

Leseprobe

Table of Contents

Series Page

Title Page

Copyright

Dedication

Preface

Acknowledgments

Part I: Occupational Fraud and Corruption

Chapter 1: Introduction to Occupational Fraud and Corruption and Recent Trends

Deception through Breaching Trust

Global Trends in Occupational Fraud

The Cost of Occupational Fraud and Corruption

Types of Occupational Fraud

Early Fraud

The Fight against Fraud

Profiling as a Solution

Chapter 2: Types of Occupational Fraud and Corruption

A Myriad of Fraud Schemes

Cybercrime

Chapter 3: What Is Fraud and More Specifically Occupational Fraud?

The Association of Certified Fraud Examiners' Definition

The American Institute of Certified Public Accountants' Definition

Statement of Auditing Standard No. 99 Definition

The Institute of Internal Auditors Definition

Duration of Fraud Schemes

Chapter 4: Corruption

The Geography of Corruption

The Fight against Corruption

Corruption and the Public Purse

Cultural and Legal Influences on Corruption

Chapter 5: Normative Crime Analysis and Investigative Psychology

Fraud Is Not a Norm

Investigative Psychology

Chapter 6: The Fraud Triangle Becomes the Fraud Diamond: A Journey through the Theory

The Fraud Triangle

Fraud Risk

The Theory Shaping Early Fraud Profiling

Part II: Profiling the Fraudster

Chapter 7: Using Profiling in the Fight against Crime and Occupational Fraud

The Mind of Adolf Hitler

Development of the Psychology

Modeling

Modeling in Fraud Detection

Chapter 8: Criminal and Fraud Offender Profiling

The Criminal Mind-Set

Investigative Psychology

Fraud Offender Profiling

Profiling Challenges

Chapter 9: Behavioral Warning Signs or Red Flags

How Red Flags Help Us Discover Fraud

Management Red Flags

Changes in Employee Behavior Representing Red Flags

Fraudsters Living beyond Their Means Exhibit Key Red Flags

Red Flags in the Accounting System

Behavioral Characteristics as Red Flags to Fraud

Chapter 10: Motivation and Opportunity as Key Indicators

The Motivation

The Opportunity

Chapter 11: Profiling Individual Behavior and Characteristics of a Fraudster

Perpetrator's Gender

Perpetrator's Age

Perpetrator's Tenure

Perpetrator's Education Level

Behavioral Red Flags Based on Perpetrator's Position

Behavioral Red Flags Based on Scheme Type

Behavioral Red Flags Based on Department

Chapter 12: Profiling the Fraudster's Position and Department

Perpetrator's Position

Perpetrator's Department

Chapter 13: Profiling the Fraud Methodology or Modus Operandi

Collusion

Position of Employment Creates the Opportunity

Many Ways to Defraud an Organization

Chapter 14: Profiling the Victim Organization and Its Geography

Fraud Victim Organizations by Geographic Location

Corruption Cases by Region

Types of Fraud Victim Organizations

Size of Fraud Victim Organizations

Methods of Fraud in Small Businesses

Industry of Fraud Victim Organizations

Corruption Cases by Industry

Chapter 15: Profiling the Consequences

Legal Proceedings and Loss Recovery

Losses Recovered

An Often Unconsidered Consequence

Chapter 16: Using Case Studies for Profiling Fraudsters

Why Reinvent the Wheel?

Some High-Profile Fraud Cases

Chapter 17: The Use of Offender Profiling in Forensic Investigations

Collation of Information

Fraud Crime Intelligence

Intelligence-Led Investigating

The Value of Offender Profiling

Improved Internal Controls

Part III: Building a Fraud Profiling Methodology for Your Organization

Chapter 18: Profiling as Part of Your Sound Antifraud Program

Antifraud Controls at Victim Organizations

Antifraud Controls in Small Businesses

Antifraud Controls by Region

Effectiveness of Controls

Control Weaknesses That Contributed to Fraud

Types of Offender Profiling

Chapter 19: Information Sources and the Role of Data Mining

Forensic Profiling and the Use of Data Mining

Supervised and Unsupervised Learning

Privacy and Ethical Concerns Surrounding Data Mining

Contributing to the Profiling Mechanism

Chapter 20: Fraud Profiling Your Organization

Personal Particulars of the Offender

Obtaining Modus Operandi Information

Determine the Motive of the Offender

Opportunity

Red Flags

Lifestyle Change

Chapter 21: The Process of Developing a Fraud Profile

Development of a Fraud Risk Assessment

Development of the Fraud Profile

Development of a Fraud Detection Net

Chapter 22: The Role of the HR Recruitment Process in Profiling

Perpetrator's Criminal History

Perpetrator's Employment History

Controlling Human Risk

Effective Human Performance

HR Departments Closing the Door on Fraud

The Curriculum Vitae: Fact or Fiction?

Bibliography

About the Author

About the Association of Certified Fraud Examiners and the Report to the Nations on Occupational Fraud and Abuse

About Certified Fraud Examiners

About the ACFE's 2012

Report to the Nations on Occupational Fraud and Abuse

Index

End User License Agreement

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Guide

Cover

Table of Contents

Preface

Begin Reading

List of Illustrations

Figure 1.1

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List of Tables

TheWiley Corporate F&A series provides information, tools, and insights to corporate professionals responsible for issues affecting the profitability of their company, from accounting and finance to internal controls and performance management.

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Profiling the Fraudster

Removing the Mask toPrevent and Detect Fraud

SIMON PADGETT

Cover image: © iStock.com/Terry Bridges

Cover design: Wiley

Copyright © 2015 by John Wiley & Sons, Inc. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data

Padgett, Simon

Profiling the fraudster : removing the mask to prevent and detect fraud / Simon Padgett.

pages cm. -- (Wiley corporate F&A series)

Includes bibliographical references and index.

ISBN 978-1-118-87104-1 (hardback)

1. Corporations--Corrupt practices. 2. White collar crimes. 3. Fraud. 4. Fraud--Prevention. 5. Fraud investigation. I. Title.

HV6768.P33 2014

658.4'73--dc23

2014034566

This book is dedicated to all the honest people in the world who face the uphill daily survival challenge while watching others steal their way to a luxury lifestyle. People with integrity have shaped my life and this book.

Preface

THE TYPICAL ORGANIZATION LOSES 5 PERCENT of its annual revenue to fraud. Applied to the estimated 2011 gross world product, this figure translates to a potential total fraud loss of more than $3.5 trillion worldwide, according to the Association of Certified Fraud Examiners (ACFE) . So, put in context, fraud material.