In the new the most recent issue of Fraud Magazine, three authors, Scott Fleming, Jonathan T. Marks, and Richard Riley, presented the article “Meta Model of Fraud”. In this piece, the authors acknowledge that the Fraud Triangle is tried and true, but feel the need for more tools to more to understand fraud cases. The authors go on to describe a “meta-model of fraud” that combines the “why-based” Fraud Triangle with the “what-based” Triangle of Fraud Action to better explain fraud cases. While it may be difficult to know exactly why fraudsters commit crimes, investigators can always gather facts and evidence to help prevent and deter fraud.
In this podcast, I chat with one of the authors, Jonathan Marks, a partner at Marcum LLP, on the limitations of the Fraud Triangle and why a new model can be helpful in the modern fraud detection and prevention context. The authors developed the triangle of Fraud Action to overlay with the Fraud Triangle to help fraud examiners understand where weak points might be exploited by fraudsters. Equally importantly, it helps compliance professionals understand how internal control systems can be exploited and how to help prevent such exploitation.
The article Meta Model of Fraud also appears on Marks’ blog Board and Fraud and can be viewed by clicking here.