Lecture five: Fraud Flashcards
What is 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
- however it is important to not that fraud does not always cause financial or economic loss to someone (CV fraud)
What does the Fraud act 2006 involve?
- Fraud by false representation
- Fraud by failing to disclose information
- Fraud by abuse of position
What is the influence of the Internet on fraud crime rates?
- scaling up
- New opportunities
- Technological Tools
- Digital interface- neutralisation
- Learning
- Globalisation huge gap between the Global North and South
Is fraud a victimless crime?
NO
- loss reimbursed by banks
- an overwhelming majority do not get their money back
- Victims may not realise they have been victimised: they may not check their bank accounts
What are the psychological Impact? Button and Cross 2017
- Anger, stress, upset
- Damage to relationships
- Embarrassment
- Fear of arrest
What are the six key principles in Cialdini’s psychology of Persuasion?
- Reciprocation eg. rejection then retreat technique
- Liking eg. physical attractiveness, similarity, familiarity
- Social proof eg. Many others are believing
- Authority: individuals are more likely to be influenced by those they perceive as experts or authorities in a given field
- Scarity eg. limited number, deadline
What is the Elaboration Likelihood model? Petty and Cacioppo 1986
It explains how people process persuasive messages and the different routes through which persuasion can occur.
Central route: individuals are motivated and think about the message
Peripheral route: individuals are not motivated no are able to process the message deeply
What is the Scammers Persuasive technique Model? Whitty 2013
The Scammers Persuasive Technique Model outlines strategies that scammers use to manipulate and deceive their victims. While specific models may vary, several common techniques are often highlighted:
- Motivated to find ideal partner
- Presented with ideal partners
Grooming
Crises- “scarcity’ technique
Sexual abuse
What are the different techniques of neutralisation?
- Denial of responsibility
- Denial of injury
- Denial of the victim
- Condemnation of the condemners
- Appeal to higher loyalties
- ‘its normal’
- Borrowing
How does the Strain theory lead to fraud?
- Possible strains - blockage of economic goals, the inability to achieve status goals and work-related stressors (Agnew, Piquero and Cullen, 2008)
- Corporate-level strain. Globalisationion of business, rapid social change, national/international economic instability, internal competition (Keane, |993)
How does differential association link to fraud?
- Learning fraud techniques from colleagues (Ditton, 1977; Mars, 1982)
- Role of local communities (e.g. workplace) in engaging cash-for-crash insurance fraud (Button et al, 2018)
