Search results

The purpose of this paper is to provide evidence on the additional costs of dealing with staff fraud, beyond the initial fraud loss, based on 45 cases of staff fraud.

The research began with a “brainstorming” session with counter fraud professionals to map all potential costs in a staff fraud. It then utilised a twin-track approach of a survey and interviews. A survey was distributed using a number of methods yielding 28 usable cases. Interviews were also sought with organisations willing to discuss staff fraud, which secured a further 17 cases. Both the survey and interview used the same questionnaire, although the latter enabled a deeper questioning of participants.

This study examined 45 cases of staff fraud from a wide range of sectors drawn predominantly from larger organisations. From each of these cases detailed, estimates of the costs of dealing with the fraud were identified. Major additional costs included the costs of investigation, staff suspensions, internal disciplinary costs, external sanctions, permanent staff replacement, miscellaneous costs as well as intangible costs. The findings identified significant costs which are significantly above the initial value of the fraud, particularly on initial frauds under £25,000.

Staff fraud is a very sensitive subject with many organisations unwilling to reveal what happens when it occurs. The approach was therefore to secure as much data as possible and as such this might not be representative of the broader economy.

The paper highlights the need for greater investment in prevention given the substantial costs of staff fraud to deal with.

This is the first attempt to gauge the full costs of staff fraud to an organisation.

Manufacturers and remanufacturers strive to maximize supply chain effectiveness by eliminating wastes in all their forms. This line of research extends the effectiveness during the products' working lives. Fraud in the warranty service chain (WSC) is one such source of waste that leads to revenue losses in the short term but when left unchecked leads to far worse results in the long term. Warranty frauds in the new product industry have received significant attention in recent literature. Addressing fraud issues in the remanufacturing industry have not been a high priority. Previous studies considered the primary parties in the WSC as possible sources of fraud. However, several unique opportunities exist for the secondary parties when it comes to fraud. This chapter considers fraud originating from one of the secondary parties of the WSC, namely the warranty administrator. The chapter models this fraud scenario using discrete event simulation and explores a possible fraud mitigation scenario.

This paper examines the role of professional associations, governmental agencies, and international accounting and auditing bodies in promulgating standards to deter and detect fraud, domestically and abroad. Specifically, it focuses on the role played by the US Securities and Exchange Commission (SEC), the American Institute of Certified Public Accountants (AICPA), the Institute of Internal Auditors (IIA), the Institute of Management Accountants (IMA), the Association of Certified Fraud Examiners (ACFE), the US Government Accounting Office (GAO), and other national and foreign professional associations, in promulgating auditing standards and procedures to prevent fraud in financial statements and other white‐collar crimes. It also examines several fraud cases and the impact of management and employee fraud on the various business sectors such as insurance, banking, health care, and manufacturing, as well as the role of management, the boards of directors, the audit committees, auditors, and fraud examiners and their liability in the fraud prevention and investigation.

Nucleic acid testing is an effective method of accurate prevention and control and a key measure to block the spread of the epidemic. However, the fraud in nucleic acid testing occurred frequently during epidemics. This paper aims to provide a viable scheme for the government to strengthen the supervision of nucleic acid testing and to provide a new condition for the punishment for the negative act of the government and the upper limit of the reward for nucleic acid testing institution of no data fraud.

This paper formulates an evolutionary game model between the government and nucleic acid testing institution under four different mechanisms of reward and punishment to solve the issue of nucleic acid testing supervision. The authors discuss the stability of equilibrium points under the four distinct strategies and conduct simulation experiments.

The authors find that the strategy of dynamic reward and static penalty outperforms the strategies of static reward and static penalty, dynamic reward and static penalty, static reward and dynamic penalty, dynamic reward and dynamic penalty. The results reveal the appropriate punishment for the negative act of the government can enhance the positivity of the government's supervision in the strategy of dynamic reward and static penalty, while the upper limit of the reward for nucleic acid testing institution of no data fraud cannot be too high. Otherwise, it will backfire. Another interesting and counterintuitive result is that in the strategy of dynamic reward and dynamic penalty, the upper limit of the penalty for data fraud of nucleic acid testing institution cannot be augmented recklessly. Otherwise, it will diminish the government's positivity for supervision.

Most of the existing evolutionary game researches related to the reward and punishment mechanism and data fraud merely highlight that increasing the intensity of reward and punishment can help improve the government's supervision initiative and can minimize data fraud of nucleic acid institution, but they fall short of the boundary conditions for the punishment and reward mechanism. Previous literature only study the supervision of nucleic acid testing qualitatively and lacks quantitative research. Moreover, they do not depict the problem scenario of testing data fraud of nucleic acid institution regulated by the government via the evolutionary game model. Thus, this study effectively bridges these gaps. This research is universal and can be extended to other industries.

In recent years, there has been considerable interest in corporate governance literature as a result of massive corporate scandals. In today’s world, almost all companies are exposed to the danger of fraud. Much work on the business risk of corporate fraud has been carried out; however, researchers still have tough discussions on the most effective methods to adopt to tackle fraud. In accordance with previous studies, it is possible to say that companies which obey the corporate governance codes to the letter can minimize the risk of fraud. The importance of this chapter lies in that it helps to explain the evidence that although the deterrent measures company can undertake may well, to a certain extent, work out the problem of fraud, they are way far from eliminating corporate crimes in establishing “corporate governance.” The latter is the key term that defines the public responsibility of corporates binding themselves to the rule of law. Corporate governance has been discussed as one of the effective ways of calling the attention of large firms to social problems and urging them to take necessary actions. The reason that companies cannot eliminate fraud is strictly linked to the evidences of critical organization studies that question the epistemic assumptions of mainstream strand of the same field. Some studies show that the subject is not rational decision-making, neither does it follow the interest, nor is it a pure homo economicus so that rationality is effective in deterring corporate frauds to a certain extent.

To identify how auditors can incorporate unpredictability into their audit plan in order to comply with both US and international auditing standards on the prevention and detection of fraud.

Review of auditing standards, fraud cases, and other audit literature.

A cost‐benefit model for evaluating unpredictability and 17 specific ways that auditors can incorporate unpredictability.

This paper can be used by practicing auditors to develop ways to increase their compliance with professional standards.

The paper fills a void in the literature with respect to how auditors can be unpredictable as required by auditing standards.

Increasingly, public sector organisations, including police, are required to justify public expenditure through a variety of performance reporting regimes. This study explores the potential for applying economic evaluation techniques as a reporting tool, using fraud investigations by the Australian Federal Police as an example. It was estimated that over 1999‐2000 and 2000‐2001, fraud investigations resulted in a net present value of $A298 million and a return to the government of $A6.00 for every dollar invested. Sensitivity analysis demonstrated that the positive results were robust. Potential improvements to the methodology were noted. On the basis of this study, benefit cost analysis appears to be an additional promising tool for the measurement and monitoring of police performance.

Reports on measures taken by the Benefits Agency to fight benefit fraud during 1993‐94. Categorizes fraud activity and reports on recent investigations. Describes the organization and specifies three ways of dealing with fraud: prevention, detection and deterrence. Outlines current and future plans.

Previous fraud studies focused on the influence of external environmental factors rather than the actor's own cognition or psychological factors. This paper aims to explore the influence of cognitive factors on people's intention to commit fraud in the construction industry.

A scenario-based questionnaire survey was conducted with 248 Chinese construction practitioners. Partial least squares structural equation modeling (PLS-SEM) was used to analyze the data.

The findings showed that perceived threat possibility and perceived threat severity positively affected people's attitudes towards fraud. The reward for compliance and response cost had adverse effects on people's attitudes. Attitude towards fraud and response efficacy directly influenced people's intentions to commit fraud.

The limitations of this study are that only behavioral intention data were collected, and a single scenario was designed. Despite these limitations, this study proposed a cognitive model to understand fraud in the construction industry and provided an empirical analysis using data from Chinese construction practitioners.

This study reveals the impact of cognitive factors on fraud in the construction industry. The results expand the understanding of fraud and propose a cognitive intervention framework to reduce fraud.

This study aims to increase awareness and educate the reader about health-care fraud targeting seniors in the USA to help stakeholders better understand, recognize and prevent this type of fraud.

This paper collects statistics on the current state of health care frauds committed against seniors, and examines related cases and laws.

The authors find this type of fraud is highly prevalent and expected to increase. Current laws preventing this fraud from occurring are multifold and complex. While prevention strategies through law enforcement have been somewhat successful, a reduction in resources may put seniors at an increased risk in the years to come.

Without additional prevention strategies, the problem will likely escalate with a growing population of older adults. This study encourages further research into effective prevention strategies and methods to fight health-care fraud against seniors.

Health-care fraud and its associated costs pose a significant threat to the society and economy of the USA. Reducing this fraud will not only reduce the costs to the US economy but also improve the physical and mental well-being of senior victims, reduce their mortality and hospitalization rates and improve the public trust placed to health-care providers.

This study highlights how health-care fraud is committed against seniors. With the projected trend of an aging US population, educating stakeholders, increasing awareness and applying tools to protect seniors will be important to reduce the absolute scope of this problem in the future.