Certified Fraud Examiners (CFEs) utilize several techniques to detect and deter fraud. Daniel Packard, MAcc, CPA, CFE recently published an article exploring the link between human psychology and traditional forensic detection procedures.  The article was published in the May/June issue of Fraud Magazine, titled “Emotional reaction to numbers.” Perpetrators continually display psychological behavioral traits consistent with the stress or fear of committing fraud, including living beyond one’s means, having an unusually close association with vendors or customers, irritability, suspiciousness, defensiveness, complaining, addictive problems and excessive control issues. While fraudsters’ circumstances may vary, all are subject to the psychological behavior traits inherent to perpetrating fraud.  Daniel’s article endeavors to substantiate that of all the sophisticated tools used to detect fraud, a fraud examiner’s most powerful and effective instrument is the ability to emotionally and psychologically profile the perpetrator. Furthermore, a CFE could potentially generalize and exploit other subconscious responses associated with the stress and fear of perpetrating fraud in the computational detection of fraud.

Published in Fraud Magazine May/June 2014