Personality traits common to fraud investigators
| DOI | https://doi.org/10.1108/JFC-03-2019-0036 |
| Pages | 119-129 |
| Date | 28 January 2020 |
| Published date | 28 January 2020 |
| Author | Lynn H. Clements |
| Subject Matter | Financial crime,Accounting & Finance |
Personality traits common to
fraud investigators
Lynn H. Clements
Barney Barnett School of Business and Free Enterprise, Florida Southern College,
Lakeland, Florida, USA
Abstract
Purpose –The purpose of this paper is to investigatethe personality traits common to fraud investigators
utilizing the ten-item personality inventory (TIPI) instrument. Moreover, the paper seeks to encourage
employers and academics to consider identifying the personality traits common to fraud investigators in
hiring and educatingpotential future investigators.
Design/methodology/approach –A survey was administered to 183 professionals using the TIPI
instrument
Findings –The professionalssurveyed self-reported a high level of conscientiousness,measured as a mean
of>12 on a scale of 14. A secondary finding is that the professionals surveyedwho are “more experienced”at
fraud investigationexhibit more openness and less neuroticismthan those with less investigationexperience.
Research limitations/implications –The first limitation is the small number of usable responses
(183). A secondlimitation is that surveys were administeredin only two states, and the results may not reflect
the general populationof professionals who search for fraud. A third limitation is that the survey respondents
had a wide variety of careers,and the results may have differed if the survey had beenadministered to only
one type of investigator.
Practical implications –The results have implications for employers, fraud investigators and
academics. Given that fraudis prevalent in all industries around the world, employers maywish to pinpoint
current or potential employees who have the personality type(s) that are best suited to detect fraud. Also,
academics may identify students who have the personality type(s) that are best suited for a career in fraud
detection.
Originality/value –This the first studyto explore the personality types that may identifypersons who are
well suitedfor fraud detection.
Keywords Personality traits, Fraud investigation, TIPI, Fraud investigators
Paper type Research paper
Introduction
Fraud continues to be a major problem in every type of industryand entity. An estimated 5
per cent of organizational revenues are lost to fraud each year (Association of Certified
Fraud Examiners (ACFE), 2018). Although the most common detection method is tips, 15
per cent of the frauds investigated in the ACFE 2018 report were discovered by internal
auditors and another 4 per cent by external auditors (Association of Certified Fraud
Examiners (ACFE), 2018, p. 17). Therefore, fraud investigators are an important part of
fraud detection. According to Crumbleyet al., there is a need for fraud auditors (which this
paper calls fraud investigators) who specialize in ferreting out deception to financial
statements and reporting(Crumbley et al., 2017).
This research did not receive any specific grant from funding agencies in the public, commercial or
not-for-profit sectors.
Traits
common to
fraud
investigators
119
Journalof Financial Crime
Vol.27 No. 1, 2020
pp. 119-129
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-03-2019-0036
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