Stealing From Students: Understanding Fraud in Education

• In Event: Crises and Corruption: Navigating the Conditions of School Culture and Climate

Abstract

We examine fraud as a threat that administrators face in their oversight of school finance by conducting the first systematic research into occupational fraud in education. Informed by the Fraud Triangle, we employ content analysis to unpack the characteristics of frauds and fraudsters in K-12 education. Our dataset consists of 738 frauds totaling approximately $200 million in losses. Our analysis shows that educational fraudsters are different—compared to a general population of frauds, education fraudsters are likely female, have been employed longer, and perpetrate frauds for longer. Additionally, school administrators commit the largest frauds due to the opportunity provided by their leadership roles. This study has direct implications for administrators by providing useful information to help administrators prevent, detect, and deter fraud.

Authors

• Lauren Eutsler, University of North Texas

• Jared Eutsler, University of North Texas