EWJ Dec 2023 - Journal - Page 69
Fraudsters frequently employ various cognitive
mechanisms to justify their actions. They may convince themselves that they are victims of an unfair system or that their victims somehow deserve their fate.
These justifications help maintain the fraudster's
image as a moral person.
and organisations can implement preventive measures, improve detection, and work toward reducing
the prevalence of fraud in society. As we continue to
study and understand the psychology of fraudsters,
we can develop more effective strategies to protect
ourselves and our financial well-being.
Detecting and preventing fraud
Preventing fraud is a complex and ongoing challenge,
but understanding the psychology of a fraudster can
help organisations and individuals take proactive measures to detect and prevent fraudulent activities.
References:
1. https://www.crowe.com/uk/insights/annual-fraudindicator
About the author:
Tim Robinson
Director, Forensic Services (Counter Fraud and Cyber
Security) at Crowe U.K. LLP
Tim.Robinson@crowe.co.uk
+44 (0)20 7842 7164
• Training and awareness: Educating employees and
individuals about the various types of fraud, the red
flags to look for, and the potential consequences can go
a long way in preventing fraudulent activities. Creating a culture of transparency and ethics can help deter
fraudsters.
Tim Robinson specialises in helping organisations to
ensure that they are properly protected against the
latest manifestations of fraud and cybercrime. He
helps organisations to measure and strengthen their
resilience where weaknesses are identified. In the
event of a suspicion of fraud he also carries out expert
investigations to uncover the truth, prevent further
loss and recover what has been taken, wherever
possible.
• Internal controls: Implementing robust internal
controls within organisations, such as regular audits,
segregation of duties, and reporting mechanisms, can
help detect and prevent fraud. These controls can
make it more difficult for fraudsters to exploit vulnerabilities.
• Whistleblower programs: Encouraging employees
to report suspicious behaviour or fraud anonymously
can provide an additional layer of protection. Whistleblower programs create a safe space for individuals to
voice their concerns without fear of retaliation.
• Monitoring and analytics: Employing data analytics
and monitoring systems can help identify unusual patterns or anomalies in financial transactions, employee
behaviour, or customer interactions. These systems
can raise red flags and trigger further investigation.
• Recruitment and intelligence: In organisational settings, rigorous employee screening processes can help
identify individuals with a higher propensity for
fraudulent behaviour. Background checks and reference checks are essential tools.
• Professional assistance: In cases of complex or sophisticated fraud, seeking the assistance of forensic investigators and accountants and legal experts can be
crucial. They have the skills and knowledge to unravel
the intricate web of fraudulent activities and can be a
strong deterrence.
• Legal consequences: Enforcing strict legal consequences for fraud can act as a powerful deterrent.
Prosecuting fraudsters and publicising the consequences can send a clear message to other potential
wrongdoers.
Understanding the psychology of a fraudster is a crucial step in the ongoing battle to reduce fraud. Fraudsters come from various backgrounds and are driven
by diverse motives, but they often share common
characteristics and psychological mechanisms. By
recognising these traits and mechanisms, individuals
EXPERT WITNESS JOURNAL
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DECEMBER 2023