ABSTRACT
Fraud has not been the subject of concerted behavioural research. Similarly, it is suggestedthat it is not a high priority in terms of police and organisational resources. This chapter proposes that an understanding of the psychological issues that serve to formulate and mediate fraudulent behaviour is crucial to its investigation and prevention. These issues are drawn from the psychological literature and include risk taking, attitudes towards targets and money, self-perception and the perceived seriousness of the crime. It is hypothesised that greater knowledge of these issues, as a result of behavioural research, will provide organisations with the means to effectively identify fraudsters in their systems. It will also provide them with the ability to influence the deviant perceptions and beliefs of the offender in order to prevent him/her from making the decision to defraud in the first place. Finally, it is suggested that early detection of the fraudster may prevent him/her from going on to commit more ‘serious’ crimes, as research has revealed that robbers, burglars and juvenile delinquents invariably have previous histories which include deception and fraud.
