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
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: Suggested Citation