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

Chapter 20Fraud Profiling Your Organization

OFFENDER PROFILING IS a practical tool for use by investigators on a routine basis in their fraud investigations.

Compiling an offender profile will require the pooling of data and information from various sources. It should be noted that offender profiling of fraudsters involves profiling an offender who has already carried out his fraud and has been identified. The profiling process involves collating data from a myriad of sources, with the sole aim of understanding how and why the fraud was committed by the particular offender. An offender profile will prove priceless for the investigator as, for example, it provides the investigator with that extra ammunition for his questioning, forming a lever during the interrogation process and creating the impression to the offender that the investigator knows more about him than he actually does. Red flags are a warning sign that there may be fraud taking place. If those red flags are probed, it is likely that something irregular or fraudulent will be encountered.

The fundamental question is what should be included in an offender profile and how and from where should the data and information be collated. Of particular interest are personal particulars of the offender, modus operandi information, the motive of the offender, opportunity to commit the crime, indicators of possible fraud red flags, lifestyle changes, sources of information for profiling, and a summary of aspects to be included ...