Determinants of occupational fraud losses: offenders, victims and insights from fraud theory

Abstract

Purpose

The paper aim at empirical examination of the predictors of the occupational fraud losses by drawing insights evolving fraud theoretical frameworks.

Design/methodology/approach

A survey of fraud professionals and witnesses in Tanzania was administered to collect data which profiled perpetrators, victims, losses and elements of financial pressure, opportunity, capability and rationalization. A total of 109 responses were analyzed through ordinary least squares regressions.

Findings

The study found that apart from organizational and individual level predictors, interactive fraud elements, incorporating situational factors and moderated by fraudster’s history have significant influence in explaining the magnitude of observed fraud losses.

Research limitations/implications

The findings of this study have implications for researchers and managers in business in enhancing understanding of the predictors of the occupational fraud losses in general, and specifically in streamlining the efforts to prevent, detect and resolve fraud on timely basis so as to minimize the frequencies and magnitudes of occupational fraud losses.

Originality/value

The study provides unique insights through empirical analysis that draws predictors from both prior literature and existing fraud theoretical frameworks. Unlike other studies relative importance of each individual, organizational and situational factors including interaction effects of key variables, are discussed.

Citation

Kalovya, O.Z. (2023), "Determinants of occupational fraud losses: offenders, victims and insights from fraud theory", Journal of Financial Crime, Vol. 30 No. 2, pp. 361-376. https://doi.org/10.1108/JFC-10-2019-0136