Welcome to Dr. Fraud.org! I am extremely excited to launch this website along with my recently published book, “The Psychology of Fraud”. My excitement is at a paramount as both of these projects took many years to complete. My idea for this monthly blog is to serve the economic crime community well and provide an area of information exchange from many perspectives in this field. I am planning to leverage my academic, investigative, consulting, domestic, and international expertise and develop blog posts that are directly from the “front line” of economic crime. I am hoping to share the exciting experiences of my global travels to this audience in the hopes of creating an even stronger and well-informed counter fraud community. One of the most significant insights I have gained from looking at this crime from such a global level, is that white collar criminals are drawn to the weakest link in a system; that is, those areas that are the most vulnerable. White collar criminals are very similar to certain animal predators that focus on the weakest members of a herd, as they are the easiest to conquer. Most predators will shy away from direct confrontation if an appearance of strength is emitted.
If you will allow me to digress into my upstate NY outdoorsman mode for a moment, I can provide a related analogy. We are taught certain survival techniques while traveling in bear country that are relevant. Survivalists teach that if confronted by a bear, make yourself look “big” and intimidating by yelling, placing your hands over your head, and standing as tall as you can. (Yes, this is true, feel free to Google it :) This is meant to emit strength and indicate to the bear that you are in fact NOT an easy meal, but that it will require some effort for them to conquer you. Although I do not plan to personally test the effectiveness of this tactic, the experts claim that it is highly effective. This is exactly the same mind-set we need to adopt in the counter fraud community on many different levels. With relation to our counter fraud peers, we cannot appear to be the weakest member of the herd, or else we will absolutely be targeted. White collar criminals are much more cognitive than regular criminals and therefore, creating strong counter measures will undoubtedly push them into targeting other carriers. We must also ensure that within our respective companies we assess where the weakest links are (they could be anywhere) and then take the appropriate measures to counter these vulnerabilities. When performing this self-assessment, or vulnerability assessment, it is critical that carriers and agencies look at every single segment of their process and leave no area unexplored. I have been deeply involved in this process during many consultations and have located vulnerabilities at the most unlikely locations, such as in the sales structure, or even after settlement. Economic criminals are a very worthy opponent, do not take this lightly!
What follows are some of the exciting topics that we are going to explore in upcoming blog posts. Did you know that in certain countries, the culture is such that even in cases of blatant fraud, they refuse to deny the claim? There are other countries where there is such strong regulation by the government that certain types of fraud are successfully prevented; however, this causes extreme spikes in other fraudulent areas, countering the goals of the regulation! We will also explore the current trends in our industry, such as the challenges faced by carriers with the daily advances in technology. We will also learn from highly successful carriers and explore what the most effective tactics are to help solve these problems.
I have many thoughts on topics for this blog post, but I am also hoping, and strongly encouraging, that you, the readers, dialogue with me and communicate topics for future blog postings. I am extremely excited to launch this website and initial blog post so as to initiate knowledge sharing amongst the counter fraud community. Please feel free to contact me at any time under the “Contact” tab of this site. Be safe!