Psychology of Fraud

In this course, we will explore proven techniques based on an understanding of the psychology of fraud to help prevent and mitigate fraud within core business systems. After defining fraud and establishing the universal scope of the problem fraud presents to organizations worldwide, we will examine the psychology and motivations of fraudsters to help us to understand and develop strategies for prevention and detection.

By understanding the psychology of fraud, we will be better able to design fraud prevention, detection, and deterrence controls. We will increase our skills in the areas of fraud prevention, detection, analysis, and some skills relating to investigations.

Specifically, we will analyze proven techniques of fraud prevention and detection that are based upon an understanding of psychological factors related to fraud. Armed with a thorough understanding of how psychology impacts behaviors, we will leave this course prepared with the knowledge we need to create a more effective anti-fraud environment. There is no CPE available for this course.

Here are the learning objectives we'll cover.

• Define fraud and different fraud theories.
• Analyze and apply fraud theories to diverse situations.
• Interpret behaviors to determine what psychological factors might contribute to fraudulent behavior.
• Explain how an understanding of the psychology of fraud leads to specific strategies for the prevention and detection of fraud.

Here are the topics we'll cover.

1. Overview and Introduction

   • Defining Fraud and its Scope
   • Fraud Prevention and Detection: Whose Job is it?
   • Management’s Perspective and Psychology

2. Why do People Commit Fraud?

   • Who Commits Fraud?
   • Fraud Triangle
   • Accidental Fraudster vs. The Predator
   • Other Fraud Theories
   • Case Studies

3. Fraud Prevention

   • How can we Use This in our Prevention Efforts?
   • Hiring/Evaluating
   • Tone at the Top
   • Organizational Culture

4. Fraud Detection

   • Symptoms and Red Flags of Fraud
   • Internal Control Weaknesses and Anomalies
   • Behavioral and Lifestyle Symptoms
   • Recruiting Fraud Fighters/Fraud Awareness Training

5. Psychology of the Aftermath

6. Key Takeaways