The Reg Doctor on the academic theory of fraud and what happens during a crisis.

As part of our Digital Regulation Series where we are putting a spotlight on financial crime, we host a webinar on each theme that we are discussing. Our second instalment explored ‘Crises, fraud and the use of AI’ and we were joined by industry experts Andrew Renshaw, VP of Banking Solutions at Feedzai and Janet Adams, Head of Strategic Projects and Performance, Business Banking at TSB.

Dr Sian Lewin opened the session with a little background about the academic theory surrounding fraud and went on to discuss what happens during an economic downturn, drawing insights from both the recession in 2008 to the current global pandemic.

“I’m going to start, like any good academic, with a brief foray into the theory around fraud and recessions. One of the most influential and significant theoretical frameworks for thinking about fraud, and white-collar crime more generally, was developed by a criminologist in the 1950s called Donald R Cressey. It suggests that the likelihood of someone committing fraud is based on three key factors. These three factors combined to form the fraud triangle which you can see on the slide here.” 

Watch the recap from Sian’s opening session here: