Psychology of Fraud

This course covers proven techniques based on understanding 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, it examines the psychology and motivations of fraudsters to help understand and develop strategies for prevention and detection. By understanding the psychology of fraud, we will be better able to design fraud prevention, detection, deterrence controls, analysis, and investigations. This course also includes proven fraud prevention and detection techniques based on an understanding of the psychological factors related to fraud. Armed with a thorough understanding of how psychology impacts behaviors, participants will be better prepared with the knowledge needed to create a more effective anti-fraud environment.

Why you should take this course

For users who are new to internal auditing, or would like to learn more about it.

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