crime type 4 - fraud Flashcards
types of fraud list some examples
- benefit fraud
- charity fraud
- consumer fraud
- embezzlement
- insurance fraud
- tax fraud
wells 2017 definition of fraud
‘any crime which uses deception as its principal modus operandi’
button and cross 2017 definition of fraud
‘fraud is the obtaining of financial advantage or causing of loss by implicit or explicit deception; it is the mechanism through which the fraudster gains an unlawful advantage or causes unlawful loss’
key features and distinctions of fraud
- fraud yields some kind of financial or economic gain to someone
- fraud does not always cause a financial or economic loss to someone (CV fraud)
- the financial or economic gain does not always benefit the fraudster (e.g. conducted by companies for fraudsters)
legal spectrum of frauds and scams (examples)
- range of behaviours
- unethical behaviour
- behaviour which may breach civil and/ or regulatory law
- criminal behaviour
-european healthcare card scams - payment protection insurance
- romance frauds
- nigerian 419 scams
fraud act 2006 list of offences
- fraud by false representation
- fraud by failing to disclose information
- fraud by abuse of position
- possession, making or supplying of articles for use in frauds
- participating in a fraudulent business
- obtaining services dishonestly
what are cyber dependent frauds?
- hacking
- monitoring
what are cyber enabled frauds?
- card not present fraud
- fraudulent sales
- phishing scams
- mass marketing frauds (aka advanced free fraud)
- romance fraud
what is the influence of the internet on fraud?
- new types of frauds - new opportunities
- adapting new technologies e.g. ebay
- industrialisation of old frauds
- fraud entrepreneurs
- neutralization of frauds
- lowered costs
- globalisation - huge gap between the global north and south
perpetration strategies for fraud
- Small amount of money and mass targeting
- Authority and legitimacy
- Visceral appeals
- Pressure and coercion
- Grooming
- Good sales techniques
- Operating in a legal hinterland
- Fraud at a distance
- Embarrassing
list types of offenders for fraud
- everyday fraudsters
- employee fraudsters
- professional fraudsters
- organised fraudsters
- corporate fraudsters
what fraudsters are the most commonly researched?
- employee fraudsters
organised fraudsters make up what per cent of reported frauds
-31% and 45% of reported frauds are perpetrated by organised crime groups
- mass marketing frauds such as boiler room frauds
- operate globally
corporate fraudsters caused what scandal
- subprime mortgage scandal in 2008, whcih resulted in mass recession
company fraudsters key facts
- 79% are men
- 68% are between ages of 36 and 55
- 32% are managers and 26% are executive members
- motivated by personal gain 60%, greed 36% and the sense of because i can 27%
-autocratic 18%
in what per cent of fraud cases do fraudsters collude with others?
62%
what is babiak and hare 2007 definition of fraudster
fraudster is a type of psychopath you see at workplaces, characterised by:
- narcissistic personality disorder
- excessive need for admiration
- a sense of superiority and entitlement
- lack of sympathy
-autoclatic
-cynical views about the morality
what are possible strains for white collar crime?
possible strains =
- blockage of economic goals
- the inability to achieve status goals
-work-related stressors
what types of white collar offenders does strain predict?
- security violations
- false claims and statements
what is corporate level strain in white collar crime ?
- globalisation of business
- rapid social change
- national/ international economic stability
- internal competition
when do some companies engage in fraud in white collar crimes?
- when the whole industry is developing, rather than under strain either at corporation or industry level
what 3 factors might be at work when fraud is committed?
- situational factors
- bondrelated factors
- moral factors
what 3 steps are taken in situational factors?
step 1: change in economic or private life
- gradual
-abrupt
step 2: criminologenic pressure
- economic strain
- social pressure
- temptation
step 3: opportunity is taken to resolve the pressure
what bond related factors are at place for fraudsters to why they commit crime?
- fraudsters experience that they are distanced from conventional society
- this leads to a weakened commitment to the laws
what moral factors are at place for fraudsters?
- moral nonchalance
-supreme moral judgment - moral blockade
- adopted moral self
what makes denial of immorality possible?
- any kind of reaction, either from law enforcements or citizens, is rare
- rarely cause moral outrage (exceptions is some white collar crimes)
- close relation between offending and victimisation - the former might give justification for the latter
what 3 types of corporate offenders are there?
- slippery slope
- intermediate long firm fraudsters
- pre-planned long firm fraudsters
define slippery slope corporate offenders
- generally have no prior convictions and fall into frauds through pressures combined with identification of opportunities
define intermediate long firm fraudsters
- some with prior convictions who started out with legitimate intentions, but eventually turn to fraud
define pre planned long firm fraudsters
- the perpetrators start with the purpose of fraud and generally have past criminal convictions although may use ‘front’ people without convictions
-some may be involved in organized crime in the traditional sense i.e drugs, racketeering, or links to them, or may focus solely on certain types of frauds
what are the 3 different diveristies of white collar offenders
weisburd and waring 2001
piquero and weisburd 2008
G3 = low frequency offenders (the same or higher level of social stability factors compared with the general public)
- crisis responders
- opportunity takers
G2 and G1 = chronic offenders
- opportunity seekers G2
- stereotypical offenders G1
A large proportion of population in UK and Germany would consider committing which following crimes?
- paying cash in hand to avoid taxation 46% e and w, 68% wg
-padding an insurance claim to make money – 22% in England and Wales and 40% in Western Germany - claiming for refunds they knew they weren’t entitled to – 10% in England and Wales and 23% in Western Germany.
what feature distinguishes frauds from other volume crimes
the fact that they are easy to rationalise
what is the essential point to take away with the commitment of fraud offenders
- that most fraudsters are ordinary, respectable people who silently commit fraud as part of their everyday lives
in what environment do consumers fell victimised and why?
due to deregulation of markets, a new ‘risk environment’ with little regulation was created
- this created ample opportunities for fraudulent transactions and sharp practices on both sides of the counter
- became a widened distance between offenders and victims
which fraud victims are said to suffer a victimless crime? and why?
credit card fraud victims
- because they suffer a financial loss but then are reimbursed by their banks
- but this is only one type of fraud victims, who do not compromise the majority
- for many other victims of fraud they do not get their money back
fraud victimisation can extend past the financial loss to what?
deterioration of physical and emotional health and well being
- depression
- relationship breakdown
who are victims of fraud?
- individuals
- private companies
- public/ government bodies
- some frauds involve only one type of victim, while others involve several actors
- primary and secondary victims
how much in 2005 did financial services lose with fraud?
£1.005 billion
how much in 2005 did other business lose due to fraud?
£1.821 billion
how much in 2005 did private individuals lose due to fraud?
£2.75 billion
how much in the national public sector was lost due to fraud in 2005?
£6.434 billion
how much in the local public sector lose due to fraud in 2005?
£0.04 billion
how much was the average loss for ticket fraud in the UK?
£80
how much for average loss of pension fraud in UK?
£39,000
psychological impact on fraud victims
- anger
- stress
- upset
- ridicule and embarrassment
- stress resulting in eating disorder
- suicidal thoughts
romance fraud victims
- causes stress in relationship due to financial impact
- one partner has to keep it secret and eventually reveal it
- family members become stressed and results in tension
what other impacts does fraud have on victims?
- damage to reputation
- fear of violence
- fear of arrest
- rarely but some cases resulted in murder
what is victim blaming in fraud?
- strong discourse that attributes blame and responsibility towards victims of online fraud and believes they should be held accountable for their actions
what is victim blaming in fraud?
- strong discourse that attributes blame and responsibility towards victims of online fraud and believes they should be held accountable for their actions
what is the stereotype of fraud victims?
what does it contradict?
- greedy
- gullible
- uneducated
- somewhat deserving of their victimisation
- contradictions with the images of the ideal victim
why is there underreporting of fraud?
- police officers belief that fraud is a victimless crime
- officers tendency to assume that there are only financial loss when actually there is the loss of relationship which can be graver
- negative stereotype
