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Profiling The Fraudster: Removing the Mask to Prevent and Detect Fraud

Book Description

Detect and combat corporate fraud with new profiling techniques

Profiling the Fraudster: Removing the Mask to Prevent and Detect Fraud takes a step-by-step approach beyond the Fraud Triangle to identify characteristics in potential fraudsters, employees and new hires that will sound alarm bells before they get their hands on your organization's assets. The typical organization loses a staggering 5% of its annual revenue to fraud. Traditional fraud investigations focus on the breakdown of internal controls but what happens when the human beings forming a key component of that chain of control are inherently dishonest? This book shows you how to recognize the characteristics and behavioral patterns of potential fraudsters who are entrusted with safeguarding corporate assets. The book includes:

  • An in-depth look at fraud investigation techniques and how these can be enhanced by using the characteristics of fraudulent behavior,

  • A detailed look at profiling potential perpetrators of fraud,

  • A detailed breakdown of how to compile a fraud profile,

  • A discussion of a wide range of organizational fraud, including abuse of power, embezzlement, computer fraud, expense abuse, and more,

  • Tables, illustrations, and diagrams to enhance the narrative

  • If you're a corporate fraud investigator, auditor, forensic accountant, law enforcement professional, or anyone challenged with safeguarding your organizations assets—Profiling the Fraudster shows you how to remove the mask and prevent and detect fraud.

    Table of Contents

    1. Series Page
    2. Title Page
    3. Copyright
    4. Dedication
    5. Preface
    6. Acknowledgments
    7. Part I: Occupational Fraud and Corruption
      1. Chapter 1: Introduction to Occupational Fraud and Corruption and Recent Trends
        1. Deception through Breaching Trust
        2. Global Trends in Occupational Fraud
        3. The Cost of Occupational Fraud and Corruption
        4. Types of Occupational Fraud
        5. Early Fraud
        6. The Fight against Fraud
        7. Profiling as a Solution
      2. Chapter 2: Types of Occupational Fraud and Corruption
        1. A Myriad of Fraud Schemes
        2. Cybercrime
      3. Chapter 3: What Is Fraud and More Specifically Occupational Fraud?
        1. The Association of Certified Fraud Examiners' Definition
        2. The American Institute of Certified Public Accountants' Definition
        3. Statement of Auditing Standard No. 99 Definition
        4. The Institute of Internal Auditors Definition
        5. Duration of Fraud Schemes
      4. Chapter 4: Corruption
        1. The Geography of Corruption
        2. The Fight against Corruption
        3. Corruption and the Public Purse
        4. Cultural and Legal Influences on Corruption
      5. Chapter 5: Normative Crime Analysis and Investigative Psychology
        1. Fraud Is Not a Norm
        2. Investigative Psychology
      6. Chapter 6: The Fraud Triangle Becomes the Fraud Diamond: A Journey through the Theory
        1. The Fraud Triangle
        2. Fraud Risk
        3. The Theory Shaping Early Fraud Profiling
    8. Part II: Profiling the Fraudster
      1. Chapter 7: Using Profiling in the Fight against Crime and Occupational Fraud
        1. The Mind of Adolf Hitler
        2. Development of the Psychology
        3. Modeling
        4. Modeling in Fraud Detection
      2. Chapter 8: Criminal and Fraud Offender Profiling
        1. The Criminal Mind-Set
        2. Investigative Psychology
        3. Fraud Offender Profiling
        4. Profiling Challenges
      3. Chapter 9: Behavioral Warning Signs or Red Flags
        1. How Red Flags Help Us Discover Fraud
        2. Management Red Flags
        3. Changes in Employee Behavior Representing Red Flags
        4. Fraudsters Living beyond Their Means Exhibit Key Red Flags
        5. Red Flags in the Accounting System
        6. Behavioral Characteristics as Red Flags to Fraud
      4. Chapter 10: Motivation and Opportunity as Key Indicators
        1. The Motivation
        2. The Opportunity
      5. Chapter 11: Profiling Individual Behavior and Characteristics of a Fraudster
        1. Perpetrator's Gender
        2. Perpetrator's Age
        3. Perpetrator's Tenure
        4. Perpetrator's Education Level
        5. Behavioral Red Flags Based on Perpetrator's Position
        6. Behavioral Red Flags Based on Scheme Type
        7. Behavioral Red Flags Based on Department
      6. Chapter 12: Profiling the Fraudster's Position and Department
        1. Perpetrator's Position
        2. Perpetrator's Department
      7. Chapter 13: Profiling the Fraud Methodology or Modus Operandi
        1. Collusion
        2. Position of Employment Creates the Opportunity
        3. Many Ways to Defraud an Organization
      8. Chapter 14: Profiling the Victim Organization and Its Geography
        1. Fraud Victim Organizations by Geographic Location
        2. Corruption Cases by Region
        3. Types of Fraud Victim Organizations
        4. Size of Fraud Victim Organizations
        5. Methods of Fraud in Small Businesses
        6. Industry of Fraud Victim Organizations
        7. Corruption Cases by Industry
      9. Chapter 15: Profiling the Consequences
        1. Legal Proceedings and Loss Recovery
        2. Losses Recovered
        3. An Often Unconsidered Consequence
      10. Chapter 16: Using Case Studies for Profiling Fraudsters
        1. Why Reinvent the Wheel?
        2. Some High-Profile Fraud Cases
      11. Chapter 17: The Use of Offender Profiling in Forensic Investigations
        1. Collation of Information
        2. Fraud Crime Intelligence
        3. Intelligence-Led Investigating
        4. The Value of Offender Profiling
        5. Improved Internal Controls
    9. Part III: Building a Fraud Profiling Methodology for Your Organization
      1. Chapter 18: Profiling as Part of Your Sound Antifraud Program
        1. Antifraud Controls at Victim Organizations
        2. Antifraud Controls in Small Businesses
        3. Antifraud Controls by Region
        4. Effectiveness of Controls
        5. Control Weaknesses That Contributed to Fraud
        6. Types of Offender Profiling
      2. Chapter 19: Information Sources and the Role of Data Mining
        1. Forensic Profiling and the Use of Data Mining
        2. Supervised and Unsupervised Learning
        3. Privacy and Ethical Concerns Surrounding Data Mining
        4. Contributing to the Profiling Mechanism
      3. Chapter 20: Fraud Profiling Your Organization
        1. Personal Particulars of the Offender
        2. Obtaining Modus Operandi Information
        3. Determine the Motive of the Offender
        4. Opportunity
        5. Red Flags
        6. Lifestyle Change
      4. Chapter 21: The Process of Developing a Fraud Profile
        1. Development of a Fraud Risk Assessment
        2. Development of the Fraud Profile
        3. Development of a Fraud Detection Net
      5. Chapter 22: The Role of the HR Recruitment Process in Profiling
        1. Perpetrator's Criminal History
        2. Perpetrator's Employment History
        3. Controlling Human Risk
        4. Effective Human Performance
        5. HR Departments Closing the Door on Fraud
        6. The Curriculum Vitae: Fact or Fiction?
    10. Bibliography
    11. About the Author
    12. About the Association of Certified Fraud Examiners and the Report to the Nations on Occupational Fraud and Abuse
      1. About Certified Fraud Examiners
      2. About the ACFE's 2012 Report to the Nations on Occupational Fraud and Abuse
        1. Index
    13. End User License Agreement