Understanding Fraud: Key Concepts and Legislation

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary modus operandi of fraud as defined in the lecture?

Deception (correct)

Physical theft of property

Direct confrontation with victims

Legal loopholes exploitation

What is one example of fraud by failing to disclose information?

Dine and dashing at a restaurant

Overstating income on a loan application (correct)

Misrepresenting investment opportunities

Faking academic qualifications

According to the lecture, what distinguishes cyber-dependent frauds from cyber-enabled frauds?

Cyber-dependent frauds could not exist without computer technology (correct)

Cyber-dependent frauds were also possible without technology

Cyber-enabled frauds involve physically committing the crime

Cyber-dependent frauds are limited to financial sectors only

What implications does the Economic Crime and Corporate Transparency Act 2023 hold for business owners?

They could be prosecuted for failing to prevent employee fraud (B) Signup and view all the answers

How has the internet influenced the prevalence of fraud?

It provides a platform that allows fraudulent activities to become easier (C) Signup and view all the answers

What is the maximum amount of compensation for customers tricked into sending money to fraudsters as of October 2024?

£85,000 (A) Signup and view all the answers

Which of the following is NOT a mechanism of fraud outlined in Cialdini's Psychology of Persuasion?

Cognitive Dissonance (C) Signup and view all the answers

Under the new PSR regulations, which type of payment required compulsory compensation before October 2024?

Unauthorised payment (A) Signup and view all the answers

What does the 'central route' refer to in the Elaboration Likelihood Model?

In-depth processing of persuasive communication (A) Signup and view all the answers

Which of the following techniques involves providing a lower initial offer followed by a higher request?

Rejection-then-retreat (A) Signup and view all the answers

What is a key outcome of the authority principle in the psychology of persuasion?

Expertise and trustworthiness can sway opinions. (C) Signup and view all the answers

Which of the following strategies might fraudsters employ to create a sense of trust?

Pretend to be an ally (D) Signup and view all the answers

Which statement reflects a common misconception about bank reimbursements for fraud victims?

All victims of fraud are fully reimbursed by banks. (B) Signup and view all the answers

What psychological impacts can fraud victims experience?

Embarrassment and anger. (D) Signup and view all the answers

Which of the following statements about victim blaming is true?

Victims are often blamed due to societal perceptions of responsibility. (C) Signup and view all the answers

How do the stereotypes of fraud victims often misrepresent them?

They describe victims as greedy, gullible, and deserving of their situation. (B) Signup and view all the answers

What is a significant consequence of victim blaming in fraud cases?

Reduced likelihood of victims seeking help. (B) Signup and view all the answers

Which of the following statements accurately describes the relationship between banks and fraud?

Banks can also be classified as victims in fraud cases. (C) Signup and view all the answers

What community perception contributes to fraud victims' experiences of embarrassment?

The belief that victims should have been better educated. (C) Signup and view all the answers

What extreme impact can fraud have on victims, although it is rare?

Physical violence or even murder. (A) Signup and view all the answers

Signup and view all the answers

Study Notes

Fraud Lecture Notes

Fraud is defined as any crime using deception as its main method. It's about gaining financial advantage or causing loss through deception.
Fraud can result in financial gain for someone, but it doesn't always cause a financial loss for another party.
The Fraud Act 2006 outlines different fraud types: false representation, failing to disclose information, and abuse of position.
Fraudsters may also create or possess items for fraudulent use, participate in fraudulent businesses, or obtain services dishonestly.
The Economic Crime and Corporate Transparency Act 2023 introduces responsibilities for preventing fraud within businesses.
Fraud has a diverse range of victims (individuals, companies, governments).
Fraud perpetrators also encompass a variety of individuals (employees, organized crime groups, or companies).
Fraud is a global problem, with high prevalence in some areas, and its causes and effects are multifaceted.
Cyber-dependent frauds require computer technology to exist while cyber-enabled ones existed before but are easier due to technology advancements.
Fraud is often a transnational phenomenon.
Increased fraud damages are seen as a growing trend, and the global financial impact is substantial.
Fraudsters use a range of strategies like manipulating people's emotions or using technology to conceal their actions.
Victims often experience emotional distress, financial hardship, and damage to relationships.
Victim blaming is a problematic issue, as neoliberal ideals often place blame on victims.
Victims may experience different levels of harm, and banks sometimes shoulder the responsibility for financial loss.
Fraudsters can use tactics to manipulate victims, like the "rejection-then-retreat" technique or exploiting perceived expertise.
The scale of fraud incidents can be very high, both reported incidents and their financial values.
Individuals engaging in fraud may use various strategies or rationalizations for their acts.
"Strain theory" suggests that individuals may commit fraud due to blocked economic or social goals.
"Routine activity theory" posits that fraud happens when the opportunity, motivation, and skills converge.
Fraud has links to human trafficking and other organized crimes, often employing similar tactics and affecting vulnerable populations.
Individuals, including employees and organised crime groups, can perpetrate fraud.
Various factors (stress, opportunity) can drive fraudulent actions at the individual and corporate level.
Fraud occurs across different demographics, industries, and geographies.

Fraud Types

Identity fraud, Insurance fraud, Mass-marketing fraud, Banking fraud
Chief executive fraud, Expenses fraud, Payroll fraud, Tax fraud, Social security fraud, Grant fraud, Advance payment fraud, Business email compromise, Investment fraud, Consumer fraud, Procurement fraud, Romance fraud, Nigerian 419 scams
Card Not Present fraud, Phishing scams, Mass Marketing Frauds, Romance Fraud. Cyber-enabled frauds, Cyber-dependent frauds.

Fraud Mechanisms

The "Fraud Triangle"
Differential association
Strain theory
Routine activity theory
Persuasive communication mechanisms
Motivations for committing fraud

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz covers the fundamental concepts of fraud, including its definitions and types as outlined in the Fraud Act 2006. It also discusses the Economic Crime and Corporate Transparency Act 2023, highlighting the responsibilities businesses have in preventing fraud. Explore the diverse range of victims and perpetrators, and gain insights into the global impact of fraudulent activities.