A.B.C.'s of Behavioral Forensics: Applying Psychology to Financial Fraud Prevention and Detection

Foreword

In more than a quarter century as a forensic accountant, I have encountered many corporate executives, managers, and staff who allegedly committed fraud. Every one of these “characters” has been fascinating and somewhat mysterious, like the protagonist in a whodunit. Each person apparently decided to falsify records or give untruthful or misleading answers to questions. Nevertheless, in every case, an objective analysis suggested to me it was inevitable that they would, in time, get caught. Their actions conflicted with basic common sense, but these apparently smart businesspeople went ahead anyway. Why? That is the riddle that hooked me on a career fighting fraud.

Data analytics now offers powerful tools and techniques to help deter or more quickly detect potential wrongdoing, reaching into huge populations of data and identifying anomalies that merit further investigation. Behavioral forensics has similar potential to help businesspeople identify anomalous behaviors that may indicate a heightened risk of fraud or other wrongdoing. In terms of widespread practical implementation, behavioral forensics may be some years behind data analytics, but its potential is just as exciting.

The authors of The A.B.C.'s of Behavioral Forensics have both academic credentials and extensive business experience. This helps to make their material more accessible and more practical than a textbook or academic paper. This book will likely introduce you to new terms and to ways of thinking ...