A Test of a Model of Fraudulent Behavior in a Purchasing Card Context

• In Event: Pre-employment Tests, "Robin Hood" Effect, and Fraudulent Behavior

Abstract

Using the Theory of Planned Behavior (TBP) as a starting point, we develop and test a model of fraudulent behavior. Six hundred and forty-six respondents recruited through the Amazon Mechanical Turk crowdsourcing platform responded to a scenario where they considered using a corporate purchasing card to acquire a tablet computer for personal use. Participants completed an instrument that assessed their intention to engage in this act, as well as their perceptions of the antecedents of fraud described in the Fraud Diamond model. Results indicate that perceived capability and motivation increase an individual’s capacity to rationalize a fraudulent act, while concern about sanctions decreases the propensity to engage in rationalization behavior. Interestingly, perceived opportunity was not associated with the propensity to engage in rationalization. In addition, there is evidence of relationships among other elements of the fraud triangle. Specifically, there are positive relationships between perceived capability to commit fraud and perceived opportunity, and between perceived opportunity and the motivation to commit fraud. These results have implications for practice and for further development of models of fraudulent behavior.

Authors

• William N Dilla, Iowa State University

• Andrew Harrison, University of Cinncinnati

• Brian Mennecke, Iowa State University