Organisations, Control Systems and Fraud

Journal of Law and Financial Management, Vol. 6, No. 2, pp. 14-21, December 2007

12 Pages Posted: 29 Apr 2008

See all articles by Suresh Cuganesan

Suresh Cuganesan

Swinburne University of Technology

David Lacey

Macquarie Graduate School of Management

Multiple version iconThere are 2 versions of this paper


This paper examines how organisations are responding to the threat of identity fraud and the challenges that they face in doing so. Quantitative data were collected from 29 Australian organisations. The majority of organisations sampled emphasised the 'anticipation' of identity fraud and, in particular, activities performed in relation to prevention, deterrence and detection. Furthermore, organisations with more sophisticated preventative controls reported lower losses. Counter-intuitively on first glance, organisations with higher detection capabilities reported higher losses (other things being equal). The contributions of this paper are two-fold. Firstly, a framework is presented that both operationalises the identity fraud construct and facilitates the measurement and understanding of organisational responses in terms of a 'value-chain' of activities. Secondly, exploratory evidence is presented on how organisations are responding to identity fraud and the efficacy of these responses.

Keywords: Identity fraud, Performance measurement, Performance management

JEL Classification: M40, M41

Suggested Citation

Cuganesan, Suresh and Lacey, David, Organisations, Control Systems and Fraud. Available at SSRN:

Suresh Cuganesan (Contact Author)

Swinburne University of Technology ( email )

Cnr Wakefield and William Streets, Hawthorn Victor
3122 Victoria, Victoria 3122
+61 3 9214 8388 (Phone)
+61 3 9819 2117 (Fax)

David Lacey

Macquarie Graduate School of Management ( email )

99 Talavera Road
Sydney, NSW 2113

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