Countering Fraud for Competitive Advantage The Professional Approach to Reducing the Last Great Hidden Cost

1 Introduction

1.1 Book Outline

End Notes

2 The Fraud Problem

2.1 Introduction

2.2 The Fraud Problem

2.3 The Extent of Fraud

2.4 Trends in Fraud

2.5 The Impact of Fraud

2.6 Conclusion

Further Reading

End Notes

3 The Fraudster and the Culture of Fraud

3.1 Introduction

3.2 Understanding the Fraudster

3.3 Cultures and Fraud

3.4 Conclusion

Further Reading

End Notes

4 The Resilience to Fraud

4.1 Introduction

4.2 National Resilience

4.3 Organisational Resilience

4.4 Further Research

4.5 ACFE Research

4.6 Understanding the Problem: Fusing the Fraudster, the Culture, and the Structures of Resilience

4.7 Conclusion

Further Reading

End Notes

5 Measuring Fraud Losses and Tailoring the Strategy

5.1 Introduction

5.2 The Problem with Risk Management

5.3 Measuring Fraud

5.4 Wider Benefits of Fraud Measurement

5.5 Conclusion

Further Reading

End Notes

6 Creating an Anti-Fraud Culture and Preventing Fraud

6.1 Introduction

6.2 Situational Measures

6.3 Creating an Anti-Fraud Culture

6.4 Conclusion

Further Reading

End Notes

7 Detecting Fraud and Investigating Professionally

7.1 Introduction

7.2 The Costs of Investigation

7.3 Who will Investigate?

7.4 Proactive Investigations

7.5 Reactive Investigations

7.6 Conducting Fraud Investigations

7.7 Psychology and Investigation

7.8 Conclusion

Further Reading

End Notes

8 Sanctioning Fraudsters and Pursuing Redress

8.1 Introduction

8.2 Understanding Fraudsters and the Place of Deterrence

8.3 The Sanctions Tool Box

8.4 Publicising Sanctions

8.5 Conclusion

Further Reading

End Notes

9 Enhancing Performance through Counter-Fraud Metrics

9.1 Introduction

9.2 New Ways of Thinking About Security and Fraud

9.3 Developing a Counter-Fraud Metrics Programme

9.4 Define Overall Objectives/Metrics

9.5 Decide Metrics That Meet Those Objectives

9.6 Develop Strategies for Generating Metrics

9.7 Establish Benchmarks and Targets

9.8 Determine How Metrics will be Reported

9.9 Create Action Plan

9.10 Review/Refine Cycle

9.11 Challenges and Critique of Metrics

9.12 Conclusion

Further Reading

End Notes

10 The Counter-Fraud Professional

10.1 Introduction

10.2 Counter-Fraud Professional Infrastructure

10.3 The Essence of the Counter-Fraud Professional

10.4 Redefining the Counter-Fraud Professional

10.5 The Counter-Fraud Department

10.6 Conclusion

Further Reading

End Notes

11 Reaping the New Competitive Advantage

11.1 Introduction

11.2 Bringing the Counter-Fraud Strategy Together

11.3 Reaping the Benefits

11.4 How Quickly can Losses be Reduced and by How Much?

11.5 The World’s 500 Largest Companies

11.6 UK FTSE 350 Companies

11.7 French CAC 40 Listed Companies

11.8 German DAX 100 Listed Companies

11.9 Concluding Remarks: Reap the Advantage!

Further Reading

End Notes

Professor Mark Button is Director of the Centre for Counter Fraud Studies at the Institute of Criminal Justice Studies, University of Portsmouth. Mark has written extensively on counter fraud and private policing issues, publishing many articles, chapters and completing five books with two forthcoming. Some of the most significant research projects include leading the research on behalf of the National Fraud Authority and ACPO on fraud victims; the Department for International Development on fraud measurement, Acromas (AA and Saga) on ‘Cash-for-Crash fraudsters’, the Midlands Fraud Forum, Eversheds and PKF on ‘Sanctioning Fraudsters’. Mark has also acted as a consultant for the United Nations Offices on Drugs and Crime on Civilian Private Security Services. Mark also holds the position of Head of Secretariat of the Counter Fraud Professional Accreditation Board. Before joining the University of Portsmouth he was a Research Assistant to the Rt Hon Bruce George MP specialising in policing, security and home affairs issues. Mark completed his undergraduate studies at the University of Exeter, his Masters at the University of Warwick and his Doctorate at the London School of Economics. 

Jim Gee is Director of Counter Fraud Services at BDO LLP, the leading accountancy and business services firm and Chair of the Advisory Board and Visiting Professor at the Centre for Counter Fraud Studies at University of Portsmouth. During more than 25 years as a counter fraud specialist, he led the team which cleaned up one of the most corrupt local authorities in the UK - London Borough of Lambeth - in the late 1990s; he advised the House of Commons Social Security Select Committee on fraud and Rt. Hon. Frank Field M.P. during his time as Minister of State for Welfare Reform; between 1998 and 2006 he was Director of Counter Fraud Services for the Department of Health and CEO of the NHS Counter Fraud Service, achieving reductions in losses of up to 60% and financial benefits equivalent to a 12 : 1 return on the costs of the work. Between 2004 and 2006 he was the founding Director General of the European Healthcare Fraud and Corruption Network; and he has since worked as a senior advisor to the UK Attorney-General on the UK Government’s Fraud Review as well as delivering counter fraud and regulatory services to public bodies and private companies both in this country and internationally. He has worked with organisations from more than 35 countries to counter fraud including for mining companies in Africa and South East Asia. He has also advised the Chinese Government about how to measure, pre-empt and reduce the financial cost of fraud.