Profiling the fraudster : removing the mask to prevent and detect fraud

Content: Preface xiii     Acknowledgments xix     PART I: OCCUPATIONAL FRAUD AND CORRUPTION     Chapter 1: Introduction to Occupational Fraud and Corruption and Recent Trends 3     Deception through Breaching Trust 4     Global Trends in Occupational Fraud 4     The Cost of Occupational Fraud and Corruption 6     Types of Occupational Fraud 8     Early Fraud 10     The Fight against Fraud 12     Profiling as a Solution 13     Chapter 2: Types of Occupational Fraud and Corruption 15     A Myriad of Fraud Schemes 16     Cybercrime 17     Chapter 3: What Is Fraud and More Specifically Occupational Fraud? 21     The Association of Certified Fraud Examiners    Definition 22     The American Institute of Certified Public Accountants    Definition 23     Statement of Auditing Standard No. 99 Definition 23     The Institute of Internal Auditors Definition 24     Duration of Fraud Schemes 25     Chapter 4: Corruption 27     The Geography of Corruption 28     The Fight against Corruption 31     Corruption and the Public Purse 33     Cultural and Legal Influences on Corruption 34     Chapter 5: Normative Crime Analysis and Investigative Psychology 37     Fraud Is Not a Norm 37     Investigative Psychology 40     Chapter 6: The Fraud Triangle Becomes the Fraud Diamond: A Journey through the Theory 43     The Fraud Triangle 44     Fraud Risk 45     The Theory Shaping Early Fraud Profiling 45     PART II: PROFILING THE FRAUDSTER     Chapter 7: Using Profiling in the Fight against Crime and Occupational Fraud 53     The Mind of Adolf Hitler 53     Development of the Psychology 55     Modeling 57     Modeling in Fraud Detection 59     Chapter 8: Criminal and Fraud Offender Profiling 61     The Criminal Mind-Set 61     Investigative Psychology 64     Fraud Offender Profiling 64     Profiling Challenges 67     Chapter 9: Behavioral Warning Signs or Red Flags 71     How Red Flags Help Us Discover Fraud 73     Management Red Flags 73     Changes in Employee Behavior Representing Red Flags 74     Fraudsters Living beyond Their Means Exhibit Key Red Flags 74     Red Flags in the Accounting System 76     Behavioral Characteristics as Red Flags to Fraud 78     Chapter 10: Motivation and Opportunity as Key Indicators 85     The Motivation 85     The Opportunity 92     Chapter 11: Profiling Individual Behavior and Characteristics of a Fraudster 95     Perpetrator   s Gender 97     Perpetrator   s Age 99     Perpetrator   s Tenure 101     Perpetrator   s Education Level 104     Behavioral Red Flags Based on Perpetrator   s Position 109     Behavioral Red Flags Based on Scheme Type 109     Behavioral Red Flags Based on Department 110     Chapter 12: Profiling the Fraudster   s Position and Department 113     Perpetrator   s Position 114     Perpetrator   s Department 117     Chapter 13: Profiling the Fraud Methodology or Modus Operandi 123     Collusion 124     Position of Employment Creates the Opportunity 126     Many Ways to Defraud an Organization 128     Chapter 14: Profiling the Victim Organization and Its Geography 133     Fraud Victim Organizations by Geographic Location 134     Corruption Cases by Region 136     Types of Fraud Victim Organizations 136     Size of Fraud Victim Organizations 136     Methods of Fraud in Small Businesses 138     Industry of Fraud Victim Organizations 140     Corruption Cases by Industry 142     Chapter 15: Profiling the Consequences 147     Legal Proceedings and Loss Recovery 148     Losses Recovered 149     An Often Unconsidered Consequence 151     Chapter 16: Using Case Studies for Profiling Fraudsters 153     Why Reinvent the Wheel? 154     Some High-Profile Fraud Cases 155     Chapter 17: The Use of Offender Profiling in Forensic Investigations 165     Collation of Information 165     Fraud Crime Intelligence 166     Intelligence-Led Investigating 168     The Value of Offender Profiling 168     Improved Internal Controls 170     PART III: BUILDING A FRAUD PROFILING METHODOLOGY FOR YOUR ORGANIZATION     Chapter 18: Profiling as Part of Your Sound Antifraud Program 175     Antifraud Controls at Victim Organizations 176     Antifraud Controls in Small Businesses 178     Antifraud Controls by Region 179     Effectiveness of Controls 179     Control Weaknesses That Contributed to Fraud 181     Types of Offender Profiling 186     Chapter 19: Information Sources and the Role of Data Mining 189     Forensic Profiling and the Use of Data Mining 190     Supervised and Unsupervised Learning 192     Privacy and Ethical Concerns Surrounding Data Mining 193     Contributing to the Profiling Mechanism 193     Chapter 20: Fraud Profiling Your Organization 197     Personal Particulars of the Offender 198     Obtaining Modus Operandi Information 198     Determine the Motive of the Offender 199     Opportunity 201     Red Flags 203     Lifestyle Change 203     Chapter 21: The Process of Developing a Fraud Profile 205     Development of a Fraud Risk Assessment 206     Development of the Fraud Profile 213     Development of a Fraud Detection Net 216     Chapter 22: The Role of the HR Recruitment Process in Profiling 223     Perpetrator   s Criminal History 224     Perpetrator   s Employment History 224     Controlling Human Risk 225     Effective Human Performance 226     HR Departments Closing the Door on Fraud 226     The Curriculum Vitae: Fact or Fiction? 227     Bibliography 231     About the Author 237     About the Association of Certified Fraud Examiners and the Report to the Nations on Occupational Fraud and Abuse 239     Index 243