Collusive Fraud: Leader, Fraud, and Organizational Characteristics

• In Event: Continental Breakfast & Research and Education Forum
  In Paper Session: Table 13: Fraud & Skepticism

Abstract

This paper examines differences between collusive fraud and solo-offender fraud, focusing on characteristics of the leader (perpetrator), fraud, and organization. We use survey data collected by the Association of Certified Fraud Examiners (ACFE) on worldwide fraud cases from 2002 to 2013. With respect to leader characteristics, collusive fraudsters are younger, more likely to be male, and less likely to have college degrees than solo offenders. Collusive fraudsters are less likely to exhibit addiction problems or excessive control issues, but more likely to have unusually close associations with vendors or customers and to have a wheeler-dealer attitude. Regarding fraud characteristics, collusive frauds are more likely to involve financial statement fraud, are larger, and are of shorter duration. Collusive frauds are more likely to be discovered by tip or complaint, internal audit, law enforcement, or by accident. Finally, collusive fraud is less likely in U.S. organizations than in non-U.S. organizations. Overall, the results highlight a number of unique dimensions of collusive fraud, and we discuss future research directions and implications for practice.

Authors

• Carol C. Bishop, Georgia Southwestern State University

• Dana R. Hermanson, Kennesaw State University

• Richard A Riley, West Virginia University