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Article
Publication date: 3 May 2016

Maria Krambia Kapardis and Konstantinos Papastergiou

The purpose of this paper is to investigate fraud victimisation of Greek companies during the financial crisis years. Moreover, the paper seeks to encourage the implementation of

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Abstract

Purpose

The purpose of this paper is to investigate fraud victimisation of Greek companies during the financial crisis years. Moreover, the paper seeks to encourage the implementation of proactive and reactive measures in an effort to minimize fraud victimisation.

Design/methodology/approach

Drawing on an extensive literature review and utilising a questionnaire administered by Krambia-Kapardis and Zopiatis (2010), auditors and management of companies who had fallen victim to fraud provided information on the typology of fraud and on proactive and reactive measures taken after a fraud incident had been reported to them. Both descriptive and inferential statistics were utilized to analyze the collected data and address the postulated research questions.

Findings

The survey has found that no industry or size of company is immune from fraud, with bigger companies and small- and medium-sized enterprises (SMEs) falling victim to industrial espionage and theft of cash and counterfeit, respectively. The banking and insurance sector appeared to be affected mainly by money laundering. Management fraud was mainly in the form of window dressing, whilst employee fraud involved predominately theft of cash and assets. Loss of reputation emerged as the main concern for the victim, and it had a determining impact on deciding not to report cases to the police.

Research limitations/implications

Because of the sensitive topic being investigated and despite having assured the respondents that their anonymity would be guaranteed, the respondents were hesitant in responding. Thus, the response rate was 16.4 per cent, slightly lower than a similar study carried out in Cyprus (Krambia-Kapardis and Zopiatis 2010). The findings, however, are considered to be reliable, given the fact that the respondents were individuals well versed with the topic under investigation and in a position to know if their company had fallen victim to fraud.

Practical implications

The findings have practical relevance to both industry stakeholders and academics who wish to further explore fraud victimization in the Greek business environment. Given that the financial crisis in Greece is continuing, fraud risk assessment ought to concentrate in the area of cash, and preventative measures need to be considered by the regulators and the victims.

Originality/value

Whilst fraud victimisation studies are becoming popular by the Big 4 accounting firms, there is no fraud victimisation study concentrating on the typology of fraud in Greece. With this survey, it will be possible to draw conclusions and make suggestions to the accounting profession on how to combat fraud, at a time, when the economic crisis is persisting and fraud is expected to escalate.

Details

Journal of Financial Crime, vol. 23 no. 2
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 12 October 2010

Simon Wesley Lane

The purpose of this paper is to present a comparative appraisal of structures, fraud loss and performance data in London local authorities (LAs) with that of the National Health…

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Abstract

Purpose

The purpose of this paper is to present a comparative appraisal of structures, fraud loss and performance data in London local authorities (LAs) with that of the National Health Service (NHS) and the Department for Work and Pensions (DWP) in order to test the Fraud Review's contention that LAs are “less well equipped” to deal with fraud than central government departments.

Design/methodology/approach

Primary research was undertaken through questionnaires to all London boroughs and interviews with key personnel in two comparator organisations.

Findings

London boroughs are no less competent or effective in investigating fraud. Each has a specialist anti‐fraud response and has similar levels of performance as comparator organisations. Whilst London boroughs outperform in some areas such as sanctions per officer against the NHS and detection levels in benefit fraud against the DWP, there are concerns over higher per unit staffing cost, principally caused by the autonomous and diverse nature of local government. Further that some authorities are unaware of, or unwilling to deal with, certain fraud typologies.

Research limitations/implications

The research was limited to London local government and further work is needed outside the capital.

Practical implications

Recommendations are made for the introduction of an explicit statutory requirement for LAs to have an anti‐fraud resource, standardisation of definitions and consideration of borough‐based multi‐agency fraud teams.

Originality/value

There has been no previous research of this type and it may be useful to government when considering how to deal with fraud, LAs and those with an interest in public sector fraud.

Details

Journal of Financial Crime, vol. 17 no. 4
Type: Research Article
ISSN: 1359-0790

Keywords

Open Access
Article
Publication date: 30 November 2023

Domenico Campa, Alberto Quagli and Paola Ramassa

This study reviews and discusses the accounting literature that analyzes the role of auditors and enforcers in the context of fraud.

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Abstract

Purpose

This study reviews and discusses the accounting literature that analyzes the role of auditors and enforcers in the context of fraud.

Design/methodology/approach

This literature review includes both qualitative and quantitative studies, based on the idea that the findings from different research paradigms can shed light on the complex interactions between different financial reporting controls. The authors use a mixed-methods research synthesis and select 64 accounting journal articles to analyze the main proxies for fraud, the stages of the fraud process under investigation and the roles played by auditors and enforcers.

Findings

The study highlights heterogeneity with respect to the terms and concepts used to capture the fraud phenomenon, a fragmentation in terms of the measures used in quantitative studies and a low level of detail in the fraud analysis. The review also shows a limited number of case studies and a lack of focus on the interaction and interplay between enforcers and auditors.

Research limitations/implications

This study outlines directions for future accounting research on fraud.

Practical implications

The analysis underscores the need for the academic community, policymakers and practitioners to work together to prevent the destructive economic and social consequences of fraud in an increasingly complex and interconnected environment.

Originality/value

This study differs from previous literature reviews that focus on a single monitoring mechanism or deal with fraud in a broadly manner by discussing how the accounting literature addresses the roles and the complex interplay between enforcers and auditors in the context of accounting fraud.

Details

Journal of Accounting Literature, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0737-4607

Keywords

Article
Publication date: 6 August 2021

Michael Levi and Russell G. Smith

This study aims to draw out the common characteristics of frauds associated with pandemics and to identify any risks unique to them.

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Abstract

Purpose

This study aims to draw out the common characteristics of frauds associated with pandemics and to identify any risks unique to them.

Design/methodology/approach

It considers the range of frauds and their reporting lags and examines what is known about current frauds against individuals, businesses and government, principally using public and private sector data from Australia and the UK.

Findings

The study identifies some novel crime types and methodologies arising during the current pandemic that were not seen in previous pandemics. These changes may result from public health measures taken in response to COVID-19, the current state of technologies and the activities of law enforcement and regulatory guardians. It shows that many frauds would occur anyway, but some specific – mainly online – frauds occur during pandemics, and because of large scale government assistance programmes to businesses and individuals, far more opportunities were created from COVID-19 than in previous eras.

Social implications

The study concludes with a discussion of the policy implications for prevention, resilience and for private and public policing and criminal justice. It stresses that plans for future pandemics must include provisions for better early monitoring and control of fraud and associated procurement corruption and notes that these require greater political will and organisation. It recommends a more serious analysis of the impact of prevention communications outreach to citizens, businesses and government.

Originality/value

The study uses fresh data on frauds from the private and public sectors and assesses some measures of control in a holistic way.

Details

Journal of Financial Crime, vol. 29 no. 2
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 1 December 2021

Anastasia Cheliatsidou, Nikolaos Sariannidis, Alexandros Garefalakis, Jamel Azibi and Paschalis Kagias

Fraud omnipresent in the media, the corporate world and the academic literature has attracted a great deal of research interest. Fraud and its various types and forms have been…

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Abstract

Purpose

Fraud omnipresent in the media, the corporate world and the academic literature has attracted a great deal of research interest. Fraud and its various types and forms have been characterized as significant contributing factors to the development of severe financial crises. Recurrent financial crimes in both the private and the public sectors remind us that fraud and its negative consequences paralyze economic entities all over the world. Understanding the multidimensional nature of fraud is key to prevent and detect it. This paper aims to examine the dominant fraud triangle model framework and its variants developed in the accounting literature to provide the etiology of fraud.

Design/methodology/approach

Having identified the fraud theory developed so far, we provide a theoretical framework for international fraud triangle.

Findings

Understanding the multidimensional nature of fraud is key to prevent and detect it. This paper examines the dominant fraud triangle model framework and its variants developed in the accounting literature to provide the etiology of fraud. Drawing on theoretical insights and useful criticism of the fraud triangle, this paper proposes an international fraud triangle model framework to help auditors, managers, regulators and academics in understanding fraud holistically in the private and public sector in a global context. The authors finally provide an overview of fraud in the Greek Context.

Originality/value

This paper proposes an international fraud triangle model framework.

Details

Journal of Money Laundering Control, vol. 26 no. 1
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 30 September 2014

Martin C. Seay, Andrew T. Carswell, Melissa Wilmarth and Lloyd G. Zimmerman

The purpose of this research was to explore the growth of Home Equity Conversion Mortgage (HECM) fraud and the role of housing counselors in its identification and prevention…

Abstract

Purpose

The purpose of this research was to explore the growth of Home Equity Conversion Mortgage (HECM) fraud and the role of housing counselors in its identification and prevention. HECMs are the Federal Housing Administration endorsed version of a reverse mortgage and represent the majority of reverse mortgages on the market.

Design/methodology/approach

To investigate HECM counselor’s training, and their ability to detect fraudulent activity, a survey was constructed and distributed nationwide using HUD’s publicly available roster of qualified agencies and counselors. The survey consisted of three main sections agency and respondent information including HECM certification process, typical interactions with clients, and mortgage fraud and HECM fraud.

Findings

Responses indicate that HECM counselors have limited awareness of and training in identifying fraudulent activities.

Originality/value

The case is made that additional training is needed to raise awareness among counselors so that they might better serve their clients. Given the sizable population that may legitimately need HECMs, it is important to improve awareness and provide training to detect fraudulent schemes and prevent this type of deception from occurring.

Details

Journal of Financial Crime, vol. 21 no. 4
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 5 July 2013

Bojan Dobovšek, Igor Lamberger and Boštjan Slak

This paper aims to present some intake on advance fee frauds. Frauds of which frequency of occurrence, despite being long present and people are globally aware of them, still…

Abstract

Purpose

This paper aims to present some intake on advance fee frauds. Frauds of which frequency of occurrence, despite being long present and people are globally aware of them, still present great danger. Several quantitative and qualitative analyses were done in order to find out how and why these messages actually work.

Design/methodology/approach

The paper is based on a literature review, quantitative analysis (using SPSS) and qualitative analysis (using MAXQDA). Databases ware composed from messages accumulated in two periods, 1998‐2005 (547 messages) and Jan‐Sept 2012 (59 messages).

Findings

Advance fee frauds are not declining in occurrence. They are constantly developing and use both bulk sending and narrower targeting. The latter present more dangers as the messages are more adapted to the interest of the message receiver. There also seems to be a severe resemblance and connection to other types of fraud, especially cybernetic frauds (like pilfering, phishing, or e‐mail spoofing). These types of frauds are global and no country is immune, nor can any country be excluded, from hosting the perpetrators.

Research limitations/implications

Though the authors' quantitative research database was big enough, there are some minor problems connected with it. Part of a database is a product of Slovenian police, which intended to analyze the content of messages, therefore because of police confidentiality issues, the database lacks some traceability. One would maybe argue that the methodology used by the police is not always the same as scientific usage of research methods, but in this case the database possesses all other necessary empirical attributes. The second database was composed from messages received by the authors, therefore they cannot say that it's totally globally representative.

Originality/value

Though there are several qualitative and quantitative studies of advance fee messages done almost daily, only a limited number are done in academic settings. However, some academic studies would benefit from non‐academic and vice versa. So the authors present some input to both kinds of studies.

Details

Journal of Money Laundering Control, vol. 16 no. 3
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 3 May 2013

Marius‐Cristian Frunza

The purpose of this paper is to recognize the effect of the VAT fraud upon the market prices and to assess the occurrence of money laundering on the carbon emissions market. The…

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Abstract

Purpose

The purpose of this paper is to recognize the effect of the VAT fraud upon the market prices and to assess the occurrence of money laundering on the carbon emissions market. The paper presents an analytic breakdown of the MTIC pocketed funds and estimates the bearish impact of the VAT trade on the carbon prices. The VAT carousel could also be used for all the steps of money laundering given the lack of control and surveillance of various trading firms.

Design/methodology/approach

In a previous work by Frunza and Guégan it was shown that the European carbon market is strongly influenced by fundamentals factors such as oil, energy, gas, coal and equities. Using public market prices and volumes for both futures and spot exchanges, the model allows us to assess and quantify the spread between the observed carbon prices and the theoretical fundamental prices. The dataset analysis reveals that the spot volumes remained abnormally high compared to an empirical economic level, even after the end of the VAT fraud on the organised exchange. These abnormal volumes could be explained by the occurrence of speculative trading linked to the money laundering.

Findings

Findings present an analytic breakdown of the MTIC pocketed funds and a bearish impact of 2‐3 euros upon the carbon prices. The paper also explains the origin of a relative persistence of high volumes on the spot market by proposing a model of placement, layering and integration steps on the carbon emissions market, similar to the VAT carousel.

Originality/value

This paper is the first study that quantifies the market manipulation effect due to VAT fraud. The work is also unique as it provides the first estimation of money laundered on the carbon emission market.

Details

Journal of Financial Crime, vol. 20 no. 2
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 2 October 2019

David Shepherd, Emma Beatty, Mark Button and Dean Blackbourn

The purpose of this paper is to explore the impact of media coverage on offenders convicted of occupational fraud and corruption in the UK. It examines the extent of media…

Abstract

Purpose

The purpose of this paper is to explore the impact of media coverage on offenders convicted of occupational fraud and corruption in the UK. It examines the extent of media coverage and provides insights into the experiences of offenders.

Design/methodology/approach

The study is based upon interviews with 17 convicted offenders, and on a content analysis of one national and two regional newspapers in the UK.

Findings

The findings suggest that offenders convicted of occupational crime and corruption are more likely to experience media coverage than previously assumed and that personal digital criminal legacies create long-term labels which lead to economic strains and social fractures that hinder productive reintegration into society.

Research limitations/implications

The research is limited by a small sample frame in the UK. Nevertheless, the findings suggest further research is required as they have important implications for privacy and rehabilitation.

Practical implications

In particular, offenders and their families need support in dealing with their personal digital criminal legacies, accessing their privacy rights and coping with the strains created by online stigmatisation. From a policy perspective, the existing regulatory framework that supports rehabilitation in the UK, especially the increasingly archaic Rehabilitation of Offenders Act 1974, requires close examination and debate to ensure it is fit for the digital era. The findings also suggest that policies, practices and responsibilities of the public sector in employing offenders need to be examined.

Originality/value

It is a rare study of white-collar offenders after their release from prison. The findings are of relevance to criminal justice policy makers, rehabilitation services and academics.

Details

Journal of Criminological Research, Policy and Practice, vol. 6 no. 1
Type: Research Article
ISSN: 2056-3841

Keywords

Article
Publication date: 4 January 2011

Kim Klarskov Jeppesen and Ulrik Gorm Møller

The purpose of this paper is to document a Danish fraud scheme, in which a large number of limited companies were stripped of their assets leaving them with nothing but tax debt…

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Abstract

Purpose

The purpose of this paper is to document a Danish fraud scheme, in which a large number of limited companies were stripped of their assets leaving them with nothing but tax debt, eventually causing the Danish Tax and Customs Administration to lose large sums. Furthermore, the purpose is to analyse why the asset‐stripping schemes occurred in a mature market economy with a strong corporate governance system and a low level of corruption.

Design/methodology/approach

The research is conducted as a longitudinal single case study based on documentary research.

Findings

The Danish case indicates that asset stripping may take place in mature market economies to the extent that perpetrators are able to circumvent the corporate governance system by giving lawyers, public accountants and banks incentives to act less critically towards dubious business transactions.

Research limitations/implications

The opportunity and rationalisations supporting the fraud are particular to the Danish context.

Practical implications

The paper provides insights into the consequences of professionals disregarding their duty to serve the public interest.

Social implications

The paper provides an example on how to circumvent the social supervisory system of a mature market economy.

Originality/value

The paper contributes to the knowledge about asset stripping by documenting and analysing the phenomenon in a mature market economy context.

Details

Journal of Financial Crime, vol. 18 no. 1
Type: Research Article
ISSN: 1359-0790

Keywords

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