What works in fraud prevention: a review of real-world intervention projects
| Published date | 22 July 2019 |
| Date | 22 July 2019 |
| DOI | https://doi.org/10.1108/JCRPP-04-2019-0026 |
| Pages | 83-96 |
| Author | Tim Prenzler |
| Subject Matter | Health & social care |
What works in fraud prevention: a review
of real-world intervention projects
Tim Prenzler
Abstract
Purpose –The purpose of this paper is to report on a searchof criminology and related databases to
identifyfraud prevention intervention projectsthat showed promising achievements in reducing offences.
Design/methodology/approach –A keyword search of Criminal Justice Abstractswas supplemented
by searches of related databases and case study repositories –conducted up to 31 May 2019. The
paper includes someattention to indicators of ‘‘what doesn’t work’’ as wellas ‘‘what might work’’ or ‘‘what
should work’’. Selection criteria were open about evidence, rather than exclusively applying strict
scientificstandards.
Findings –Overall, the literature is marked by inferences regarding what should work, based on
diagnostics about opportunity factors in fraud and victim characteristics. In terms of evaluated
intervention projects, only two were identified that met best practice scientific standards. However, a
further17 projects were included where there was some evidence of a likely benefit.
Research limitations/implications –Available evaluations of intervention projects are predominantly
within-in groupstudies. Pre- and post-intervention timeframes are often short, limited to one year or less;
with onlyone follow-up study.
Practical implications –The findingsdemonstrate the need for applied experimentsto build knowledge
about effective fraud reductionstrategies. The main lesson from the content of the 19 projectsconcerns
the value of a situational crime prevention framework for designingand testing interventions, especially
through enhancing rule setting, reducing anonymity, extending guardianship and formal surveillance,
and facilitatingcompliance.
Originality/value –This appears to be the first systematic literature review of applied counter-fraud
interventionprojects.
Keywords Literature review, Case studies, Fraud, Situational crime prevention, Fraud prevention,
Extending guardianship, Situational fraud prevention
Paper type Research paper
Introduction
In official terms, fraud involves obtaining a benefit illegally by deception. It appears as the
main area of crime internationally that has gone against the trend of declining rates since
the turn of the century (Prenzler, 2017a;PWC, 2018). The reasons for this appear to relate
primarily to the ongoing growth of the internet and the means it provides to deceive victims
from a distance. At the same time, manymore traditional types of fraud continue to occur at
high volumes –including deceptive advertising, Ponzi and pyramid schemes, insider
trading, procurement fraud, embezzlement and much more (Prenzler, 2017a;PWC, 2018).
Fraud also often continues to account for the largest category of crime in terms of direct
financial losses to victimsin many jurisdictions (Prenzler, 2017a;Warrell, 2017).
Given the size and growth of the fraud problem, it would be reasonable to expect a large
number of well-documented intervention studies aimed at demonstrating successful anti-
fraud strategies. However, this does not appear to be the case. The fraud literature has
been characterised by descriptivestatistics of the dimensions of the problem, and analyses
Tim Prenzler is based at the
School of Law and
Criminology, The University
of the Sunshine Coast, The
Sunshine Coast, Australia.
Received 9 April 2019
Revised 8 June 2019
Accepted 10 June 2019
DOI 10.1108/JCRPP-04-2019-0026 VOL. 6 NO. 1 2020, pp. 83-96, ©Emerald Publishing Limited, ISSN 2056-3841 jJOURNAL OF CRIMINOLOGICAL RESEARCH, POLICY AND PRACTICE jPAGE 83
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