White-Collar Criminals: Do We Need a New Profile?

Source: The CPA Journal

Auditors and others investigating fraud often rely on a well-established profile of the white-collar criminal: Fraudsters tend to be middle-aged, well-educated first-time offenders driven to crime by the “fraud triangle” of incentive, opportunity, and rationalization. They're thought to be trusted employees in positions of responsibility who are “good citizens” both at work and in the community.

The authors surveyed 106 male federal prison inmates convicted of white-collar crimes. (Statistics show that although women are nearly as likely to commit fraud, the costliest frauds are committed by perpetrators at the owner/executive level, who are predominantly male). The survey results supported much of the traditional profile, but called into question certain elements. For example, a surprising number of convicts (23 percent) were repeat offenders, and the authors believe that figure may be understated because fraud is difficult to prosecute. Also, the characterization of fraudsters as good citizens may not be accurate.

Although further research is needed, the survey results contradict certain accepted stereotypes about those who commit fraud.

For the complete article, read “Interviewing the Fraudsters.”

From The CPA Journal, A Publication of the New York State Society of CPAs, February 2012, www.cpajournal.com.