In this practitioner’s perspective on the role of ethics in fraud prevention, I outline the situation that compelled Nedcor Bank in South Africa to establish their own fraud investigation and prevention unit. A brief discussion of the role, functions and achievement of the fraud unit follow this. Then the various components of the bank’s fraud detection and prevention strategies are described. These include the nurturing of a commitment to zero tolerance towards fraud (...) amongst the entire staff, the communication strategy, control mechanisms, and culture change within the bank. These respective dimensions are then examined to reveal the role that ethical values and considerations play with regard to each of them. It is concluded that ethics does not only provide the foundation for the entire strategy, but also forms an integral part of each strategic dimension. (shrink)

Fraud in medical publications is an increasing concern. In particular, disciplines related to perioperative medicine—including anaesthesia and critical care—currently hold the highest rankings in terms of retracted papers for research misconduct. The dominance of this dubious achievement is attributable to a limited number of researchers who have repeatedly committed scientific fraud. In the last three decades, six researchers have authored 421 of the 475 papers retracted in perioperative medicine. This narrative review reports on six cases of fabricated publication (...) in perioperative medicine that resulted in the paper’s retraction. The process that led to the unveiling of the fraud, the impact on clinical practice, and changes in regulatory mechanisms of scientific companies and governmental agencies’ policies are also presented. Fraud in medical publications is a growing concern that affects perioperative medicine requiring a substantial number of papers to be retracted. The continuous control elicited by readers, by local institutional review boards, scientific journal reviewers, scientific societies and government agencies can play an important role in preserving the ‘pact of trust’ between authors, professionals and ultimately the relationship between doctors and patients. (shrink)

In response to calls for more research on how to prevent or detect fraud (ACAP, Final Report of the Advisory Committee on the Auditing Profession, United States Department of the Treasury, Washington, DC, 2008 ; AICPA, SAS No. 99: Consideration of Fraud in a Financial Statement Audit, New York, NY, 2002 ; Carcello et al., Working Paper, University of Tennessee, Bentley University and Kennesaw State University, 2008 ; Wells, Journal of Accountancy, 2004 ), we develop a framework that (...) identifies three psychological pathways to fraud, supported by multiple theories relating to moral intuition and disengagement, rationalization, and the role played by negative affect. The purpose of developing the framework is twofold: (1) to draw attention to important yet under-researched aspects of ethical decision-making, and (2) to increase our understanding of the psychology of committing fraud. Our framework builds on the existing fraud triangle (PCAOB, Consideration of fraud in a financial statement audit. AU Section 316, www.pcaobus.org , 2005 ) which is used by auditors to assess fraud risk. The fraud triangle is composed of three factors that, together, predict the likelihood of fraud within an organization: opportunity, incentive/pressure, and attitude/rationalization. We find that, when faced with the opportunity and incentive/pressure, there are three psychological pathways to fraud nestled within attitude/rationalization: (1) lack of awareness, (2) intuition coupled with rationalization, and (3) reasoning. These distinctions are important for fraud prevention because each of these paths is driven by a different psychological mechanism. This framework is useful in a number of ways. First, it identifies certain insidious situational factors in which individuals commit fraud without recognizing it. Second, it extends our knowledge of rationalization by theorizing that individuals use rationalization to avoid or reduce the negative affect that accompanies performing an unethical behavior. Negative affect is important because individuals wish to avoid it. Third, it identifies several other methods fraudsters use to reduce negative affect, each of which could serve as potential “psychological red flags” and helps predict future fraudulent behavior. Finally, our framework can be used as a theoretical foundation to explore several interventions designed to prevent fraud. (shrink)

The study aimed to identify the effect of applying detection and prevention tools for career fraud in combating and preventing fraud and reducing its risks through an applied study on Palestinian Ministry of Health in Gaza Strip, Palestine. To achieve the objectives of the study, the researchers used the questionnaire as a main tool to collect data, and the descriptive and analytical approach to conducting the study. The study population consisted of (501) supervisory employees working at MOH (...) in Gaza Strip, Palestine. The researchers used the stratified random sample method and the multiple regression method to measure the effect. The study concluded a set of results, the most important of which is a positive evaluation among respondents about the levels of application of tools to detect and prevent job fraud within MOH, and the presence of a high interest in tools to prevent job fraud during the implementation of its various work. The study recommended the necessity for the Palestinian National Authority to develop and approve laws regulating health sector, so that those laws guarantee the prevention of conflicts of interest, especially for the category of doctors, by preventing job duplication of doctors working in the government sector. Also study recommended the need for MOH to adopt principles of health sector governance and begin immediately to implement them. This process to ensure transparency, disclosure and accountability in the business framework in a manner that realizes the effective protection of stakeholders and does not compromise or discriminate in the application of these principles, which ensures that all forms of job fraud are organized in an organized manner and within fixed legal frameworks. (shrink)

Fraud in Europe is complex and well organised: it crosses organisational and geographic boundaries. The policing of fraud, on the other hand, is characterised both at national and transnational levels by fragmentation and divided accountability. This paper considers the issues involved in combating fraud in European institutions and spending programmes. It discusses the roles of those bodies with transnational responsibilities such as UCLAF , the European Fraud Prevention Office and the European Court of Auditors. The (...) paper considers the difficulties associated with the Corpus Juris proposals for a single European legal area to facilitate the fight against fraud related to the European Budget. It concludes that the task of policing Europe is hampered not only by the diversity of national political and jurisprudential systems, but also by the weakness and lack of independence of the transnational institutions. (shrink)

Internet fraud is an issue that increasingly concerns regulators, consumers, firms, and business ethics researchers. In this article, we examine one common form of internet fraud, the practice of shill bidding (when a seller in an auction enters a bid on his or her own item). The significant incidence of shill bidding on eBay (in spite of the fact that it is illegal just as it is in live auctions) exemplifies the current ineffectiveness of regulatory means as well (...) as the lack of effective societal mechanisms to prevent online fraud. Further, the proliferation of shill bidding along with other types of internet fraud may have broader implications. If unethical behavior such as shill bidding becomes too widespread on the internet, regulators and other societal forces may deem it necessary to institute controls that will impact the entire online marketplace as well as the future development and regulation of business activities on the internet. Our results indicate that shill bidding is perpetrated on eBay significantly more often than 0.1% rate of fraud estimated by the firm. This suggests that regulators, users, and others stakeholders may become concerned enough to act. The impact of those responses on the internet of the future may affect a broad array of users beyond the unethical sellers on eBay. (shrink)

This document discusses the status of research on detection and prevention of financial fraud undertaken as part of the IST European Commission funded FF POIROT (Financial Fraud Prevention Oriented Information Resources Using Ontology Technology) project. A first task has been the specification of the user requirements that define the functionality of the financial fraud ontology to be designed by the FF POIROT partners. It is claimed here that modeling fraudulent activity involves a mixture of law (...) and facts as well as inferences about facts present, facts presumed or facts missing. The purpose of this paper is to explain this abstract model and to specify the set of user requirements. (shrink)

The rising tide of corporate scandals and audit failures has shocked the public, and the integrity of auditors is being increasingly questioned. It is crucial for auditors and regulators to understand the main causes of audit failure and devise preventive measures accordingly. This study analyzes enforcement actions issued by the China Securities Regulatory Commission against auditors in respect of fraudulent financial reporting committed by listed companies in China. We find that auditors are more likely to be sanctioned by the regulators (...) for failing to detect and report material misstatement frauds rather than disclosure frauds. Further analysis of the material misstatements indicates that auditors are more likely to be sanctioned for failing to detect and report revenue-related frauds rather than assets-related frauds. In sum, our results suggest that regulators believe auditors have the responsibility to detect and report frauds that are egregious, transaction-based, and related to accounting earnings. The results contribute to our knowledge of auditors’ responsibilities for detecting frauds as perceived by regulators. (shrink)

This is a theoretical treatment of the term "Sha Zhu Pan" (杀猪盘) in Chinese, which translates to “Pig-Butchering” in English. The article critically examines the propagation and validation of "Pig Butchering," an animal metaphor, and its implications for the dehumanisation of victims of online fraud across various discourses. The study provides background information about this type of fraud before investigating its theoretical foundations and linking its emergence to the dehumanisation of fraud victims. The analysis highlights the disparity (...) between academic literature, subjected to rigorous peer-review processes, and sensationalised narratives prevalent in the media. While academic works subject "pig butchering" to critical scrutiny and refrain from endorsing derogatory terms to depict fraud victims, numerous media outlets employ this term uncritically, further worsening the predicament of these victims. "Pig butchering" is firmly rooted in the concept of dehumanisation, and this article underscores how language moulds perceptions of fraud and behaviour, extending to the development of preventive strategies. The role of law enforcement agencies in generating and disseminating materials is also a central theme, emphasising their responsibility as trusted sources of information. We suggest that these agencies should adopt non-victim shaming language to encourage victims to report crimes and alleviate the stigma attached to victimisation. Additionally, the article offers valuable cross-cultural insights by comparing metaphors from Chinese and Nigerian contexts. This comparative analysis enriches our comprehension of the global dimensions of online fraud and its cultural diversities, highlighting the substantial impact of language on perceptions and behaviours. We advocate for a departure from victim-blaming tendencies perpetuated by select media outlets, urging a more compassionate and accurate portrayal of those affected by online fraud. We, therefore, call for a more empathetic and accurate portrayal of individuals affected by online fraud, aligning with the broader objective of promoting understanding and support for these victims. (shrink)

While sustainability is largely associated with do-gooders, this article discusses whether and how fraud might also be an issue in sustainability departments. More specifically, transferring the concept of the fraud triangle to sustainability departments I discuss possible pressures/incentives, opportunities, and rationalizations/attitudes for sustainability managers to commit fraud. Based on interviews with sustainability and forensic practitioners, my findings suggest that sustainability managers face mounting pressure and have opportunities to manipulate due to an immature control environment. Whether a presumably (...) morality-driven attitude may prevent them from committing and easily rationalizing fraud remains controversial. Even though cases of fraud happening in sustainability departments are still widely unknown, the interview analysis reveals that sustainability fraud is likely to occur at least to some extent—and presumably remains undetected. The study brings to light the importance of a clear commitment from executives to sustainability to prevent sustainability fraud and demonstrates adverse developments driven by external stakeholders, specifically the bonus relevancy of sustainability index scores. In particular, the study shows a lack of awareness for potential fraud in sustainability departments. (shrink)

The purpose of this paper is to develop an understanding about the internal fraud and corruption problem in the Turkish construction industry. The reasons behind the internal fraud and corruption problem as well as the types of prevention methods were investigated; and as a result various recommendations were made. To this end, a risk awareness questionnaire was used to understand the behavioral patterns of the construction industry, and to clarify possible proactive and reactive measures against internal (...) class='Hi'>fraud and corruption. The type of fraud experienced by Turkish construction companies was also surveyed in the questionnaire. The questionnaire was sent to 89 firms; and depending on the collected data, certain recommendations for construction industry professionals were provided. (shrink)

Internet-based health research is increasing, and often offers financial incentives but fraudulent behavior by participants can result. Specifically, eligible or ineligible individuals may enter the study multiple times and receive undeserved financial compensation. We review past experiences and approaches to this problem and propose several new strategies. Researchers can detect and prevent Internet research fraud in four broad ways: through the questionnaire/instrument ; through participants' non-questionnaire data and seeking external validation through computer information,, and 4) through study design. These (...) approaches each have pros and cons, and raise ethical, legal, and logistical questions, given that ethical tensions can emerge between preserving the integrity of research vs. protecting the privacy and confidentiality of study respondents. While past discussions concerning the ethics of online research have tended to focus on the participants' ability to trust the researchers, needs now arise to examine researchers' abilities to trust the participants. This analysis has several critical implications for future practice, policy, and research. (shrink)

Forensic studies have identified fraud as a major factor that hampers Africa’s economic development. This paper first establishes a link between fraud and the ideal of the African Renaissance. It then gives an overview of the extent of fraud in Africa by discussing the findings of a recent forensic survey on fraud in Africa. Against this backdrop it is then argued that what is needed to turn the tide of fraud in Africa is a transvaluation (...) of loyalties to include and cover interests of the modern nation‐state rather than just those of the clan, tribe and race. The paper finally calls for African nations to rise up to new challenges in governance by upholding ethical values and by their determination to detect and prevent all forms of fraud as the only viable way towards the realisation of the ideal of an African Renaissance. (shrink)

This study examines whether the delegated monitoring of main banks effectively decreases severe agency problems. For example, this includes accounting fraud in bank-dominated corporate governance. In this context, the fraud triangle specifies the three main factors of opportunity, incentive, and rationalization. Main banks may reduce the factor of opportunity through actions such as monitoring, which plays a moderating role by reducing the potential for managerial misconduct, whereas, the incentive factor may be enhanced through the subsequent pressure that influences (...) managers to force turnover when they do not repay debts. The potential influence that the main banks have on the fraud rationalization factor may be stronger in firms that are more dependent on main-bank borrowing. This study analyzed data from publicly listed firms in Japan for the period between 2008 and 2016 to determine how main-bank relationships affected accounting fraud, thus allowing an assessment of delegated monitoring practices. Findings showed that main-bank relationships were helpful for reducing accounting fraud, suggesting its overall effectiveness in delegated monitoring. Results also showed that large audit firms did not necessarily prevent accounting fraud, which implies that main banks can employ their own monitoring as a substitute for the roles typically played by these firms. Here, the main policy implication is that main-bank relationships may strengthen business ethics in the context of bank-dominated corporate governance. In conclusion, the continued analysis of bank monitoring may benefit stakeholders while strengthening business ethics in bank-centered economies. (shrink)

Healthcare trends, stressors, and workplace violence -- Patient privacy and exploitation -- Abuse and assault -- Fraud and theft -- Suspicious death and homicide -- Investigations, sanctions, and discipline -- Prevention strategies and the future of healthcare crime.

There has been considerable interest recently in scientific misconduct. Although much has been written and discussed about specific cases, very little, if any, research has been carried out on the process of fraud. An understanding of this aspect can contribute much to methods of detection and lead to recommendations for preventing misconduct and for implementation of appropriate sanctions where fraud has been detected and proved. In this article I initiate a study of the process of fraud using (...) a series of case studies. Hypotheses are generated by methods pioneered by Peirce and most recently developed and thoroughly discussed by Glaser and Strauss under the name of grounded theory. Some illustrations of what can be learned from such studies are included. (shrink)

Insurance claims fraud receives increasing attention in the insurance industry, in academic studies and in public policy spheres. Claims fraud is variously viewed as an economic-contractual problem, a moral-psychological problem, a moral-sociological problem or a criminal problem. This article discusses these theoretical perspectives on insurance claims fraud and reviews the empirical evidence on its nature and prevalence. Most research concludes that opportunistic soft fraud is more prevalent than planned criminal fraud, and that consumer ethics, attitudes (...) and psychology are important aspects of the insurance fraud problem. On the contrary, much of the policy focus on reducing fraud has been directed toward detecting and criminalizing fraud. In light of existing research, care must be taken in applying these approaches to address soft fraud. Greater focus on the social and psychological dimensions of insurance claims fraud may increase the success of soft fraud prevention and decrease the likelihood that the focus on fraud will impair insurance relationships. Improving such prevention efforts requires a better understanding of the various dimensions of fraud, the determinants of fraud behaviors and the relationship between fraud behavior and the institutional setting. (shrink)

This study links Cressey’s established fraud triangle theory to a recently developed academic fraud risk triangle as a platform for identifying the determinants of academic fraud risk factors. The study then evaluates the magnitude and extent to which students are willing to confront the realities of academic fraud and move towards a culture of academic integrity. Most of the studies pertaining to combating academic fraud have primarily been the opinions of the researchers, namely, the faculty. (...) Although students may not be expected to police the fight against academic fraud, their opinions as to what would work and what would not, have not been sufficiently examined, and this study contributes to filling that void. We explore the agreement among students and groups of students concerning specific deterrent strategies. We find two types of strategies, student action and faculty/administration action . Results from 740 students surveyed found that the most widely supported strategies are stronger penalties, parental notification, an anonymous tip line, and administering a uniform policy. The least supported strategies were academic honor code, no strategy at all, requiring an ethics course, and leaving individual instructors to determine penalties. Further, full time, domestic, undergraduate, and male students favor student action strategies, which are more reactionary and less punitive. (shrink)

Criminals targeting and exploiting older adults in online environments are of great concern. This study systematically retrieved and analyzed articles on the psychological characteristics of older adult victims of online fraud. First, we found that there was no evidence that older adults were more prevalent than other individuals of other ages among online fraud victims, and current researchers have focused more on why older adults are easy targets for fraud. Second, research on psychological factors of older adults' (...) susceptibility to online fraud has mainly focused on cognitive function, trust traits, and other personality traits, such as social loneliness, the Big Five personality traits, and self-control. Among them, most researchers claim that the cyber-cheating of older adults may be due to a decline in their cognitive function. However, there has not been a consensus on how cognitive function and physical and mental conditions affect older people who are cheated. Third, techniques and experience may be related to the susceptibility of older adults to fraud, and these studies have also not yet generated a consensus supported by reliable data. Based on the above research uncertainties, we propose that fraud prevention and control strategies for older adults should be applied with caution. (shrink)

This study investigates the key factors that elicit financial reporting fraud among companies in Malaysia. Using enforcement action releases issued by the Security Commission of Malaysia and Bursa Malaysia, we identify a sample of 76 firms that had committed financial reporting fraud during the period of 1996–2016. We use the fraud triangle framework and the Malaysian International Standards on Auditing 240 to identify the factors. Since the simple probit model fails to address the identification problem, we estimate (...) our results using a bivariate probit model. The new model estimates the effects of pressure, opportunity, and rationalization on the probability of fraud likelihood by disentangling the detection probability of fraud. Among several proxies used for pressure, our results suggest that aggressive tax reporting and financial difficulties increase the likelihood of fraud commission. In regard to opportunity, we find that dedicated institutional investors, independence of the board, effective audit committee, and the presence of a female on the board provide active monitoring and oversight in reducing fraud occurrence. Results for rationalization suggest that prior violations and frequent changes of external auditors increase the chances of fraud occurrence. This research offers possible insights to auditors, managers, and regulators to prevent, detect, and react to fraud. Specifically, it highlights the specific factors that may exacerbate the fraudulent intentions of firms. (shrink)

Revealing what is happening in organizations in relation to ethical issues and what corrective action can be taken to prevent unethical practices, the author deals with a different aspect of ethical (or unethical) management within each chapter concluding with a quiz and case study.

At present, there are more and more frauds in the financial field. The detection and prevention of financial frauds are of great significance for regulating and maintaining a reasonable financial order. Deep learning algorithms are widely used because of their high recognition rate, good robustness, and strong implementation. Therefore, in the context of e-commerce big data, this paper proposes a quantitative detection algorithm for financial fraud based on deep learning. First, the encoders are used to extract the features (...) of the behaviour. At the same time, in order to reduce the computational complexity, the feature extraction is restricted to the space-time volume of the dense trajectory. Second, the neural network model is used to transform features into behavioural visual word representations, and feature fusion is performed using weighted correlation methods to improve feature classification capabilities. Finally, sparse reconstruction errors are used to judge and detect financial fraud. This method builds a deep neural network model with multiple hidden layers, learns the characteristic expression of the data, and fully depicts the rich internal information of the data, thereby improving the accuracy of financial fraud detection. Experimental results show that this method can effectively learn the essential characteristics of the data, and significantly improve the detection rate of fraud detection algorithms. (shrink)

This article examines fifty case files of cybercriminals that the Economic and Financial Crimes Commission (EFCC) convicted for online romance fraud. It profiles offenders and explores the value of the Space Transition Theory in understanding digital crimes. Through documentary analysis, the study identifies key patterns in victim demographics, fraudsters’ operational strategies, and offenders’ socioeconomic backgrounds. Findings reveal a high concentration of U.S. victims (56%) and a preference among offenders for Apple’s iPhone (58%). Most offenders presented themselves as Caucasian American (...) males (46%) or military personnel (12%), with some adopting Caucasian European male identities (10%). Victim demographics show a pronounced gender disparity: 70% of offenders primarily targeted female victims, 14% targeted male victims, 10% reached both genders, and 6% did not specify the victims’ gender. The analysis also indicates that most offenders were university students (74%), with Facebook (46%) identified as the primary platform for these fraudulent activities. The study emphasizes the need for prevention strategies that genuinely consider the socioeconomic and political conditions that may make online fraud an appealing career option. (shrink)

Mass-marketing frauds are on the increase. Given the amount of monies lost and the psychological impact of MMFs there is an urgent need to develop new and effective methods to prevent more of these crimes. This paper reports the early planning of automated methods our interdisciplinary team are developing to prevent and detect MMF. Importantly, the paper presents the ethical and social constraints involved in such a model and suggests concerns others might also consider when developing automated systems.

In 1992, The Danish Medical Research Council established a national committee on scientific dishonesty with the twofold task of handling cases of scientific misconduct and taking preventive initiatives. Scientific dishonesty was proven in only five cases, but in another nine cases lesser degrees of deviations from good scientific practice were found. The experiences from a total of 24 treated cases indicated that three key areas were at the basis of most of the accusations and the deviations from good practice: uncertainty (...) about 1) authorship, about 2) rights and duties to use scientific data and about 3) agreements at the initiation of joint studies. As a consequence guidelines on good practice have been issued on these key subjects. (shrink)

Despite the police preventing special fraud victimisation of older adults, both the number of cases and the amount of damage have remained high in Japan. ‘Special fraud’, in Japan, is a crime in which victims are tricked by fraudsters who through phone or postcards impersonate the victims’ relatives, employees and other associates, to dupe the victims of their cash or other valuables. The number of recognised cases of special fraud has been turned to increase in 2021. Although (...) police or consumer affairs administrations have been conducting all-encompassing enlightenment or public education for prevention, it is also necessary to reach out to those who are vulnerable to fraud. In this study, we determine the psychosocial characteristics of victims of special fraud in Japanese older adults. We analysed the age, gender, education, residential status, household satisfaction, risk perception and scam vulnerability scale of 56 older adults aged 60 years or older who had been victims of special fraud and 99 older adults aged 60 years or older who had never been victims of special fraud. The study found that the victimised older adults were more likely to be females who live alone and go out less frequently than the non-victimised older adults. The total scores of the scam vulnerability scale were higher among the elderly victims of special fraud compared to those who had never been scammed, suggesting that the psychosocial characteristics of victims of special fraud among older adults are being female, living alone, going out infrequently, having high confidence against fraud victimisation and responding quickly to phone calls and unknown visitors. Therefore, government agencies or family members should take care of older women who meet these characteristics to reduce their contact with fraudsters. (shrink)

The Brazilian Federal Senate created a Parliamentary Inquiry Commission (CPI) to investigate the Bolsonaro government's irregularities in the management of the COVID-19 pandemic. One of the cases that drew attention was the research conducted by Prevent Senior, a private health insurance company, on the early treatment of COVID-19. The article analyzes the scientific validity of the research and the ethical problems related to its implementation. It is based on analysis of Prevent Senior's report of the clinical study, the Brazilian and (...) USA clinical trial registries, the Senate's CPI report, and on the information reported by the media. This case of scientific fraud and political-ideological bias exemplifies how Prevent Senior, using a questionable protocol to enhance its reputation and gain government support, was instrumental in building the “early treatment” narrative for COVID-19, and shows how it served as a basis for a government public policy that promoted the use of ineffective drugs. (shrink)

ResumenEl Senado Federal de Brasil creó una Comisión Parlamentaria de Investigación (CPI) para investigar las irregularidades del gobierno de Bolsonaro en la gestión de la pandemia de COVID‐19. Uno de los casos que llamó la atención fue la investigación llevada a cabo por Prevent Senior, una empresa privada de seguros de salud, sobre el tratamiento temprano de COVID‐19. Este artículo analiza la validez científica de la investigación y los problemas éticos relacionados con su implementación. Se basa en un análisis del (...) informe del estudio clínico de Prevent Senior, de los registros de ensayos clínicos de Brasil y Estados Unidos, del informe de la CPI del Senado y de información difundida por los medios de comunicación. Este caso de fraude científico y sesgo político‐ideológico ejemplifica cómo Prevent Senior, utilizando un protocolo cuestionable para mejorar su reputación y obtener el apoyo del gobierno, contribuyó a la construcción de la narrativa de “tratamiento temprano” para COVID‐19, y muestra cómo sirvió de base para una política pública del gobierno que promovió el uso de medicamentos ineficaces. (shrink)

According to Hanne Andersen, "an analysis of goes beyond research ethics and includes important epistemological aspects" (p.1). Her purpose is to point at a new area for philosophy of science in practice, which she does by highlighting different epistemological issues about malpractices and showing how documenting them in a precise way is beneficial to their solution. She articulates in particular two questions, namely the issue of the identification of bad practices and malpractices, and the ways of preventing the latter from (...) happening. I shall discuss how Andersen contributes to these issues, and make additional suggestions. Before going further, I first want to clarify a few points. (shrink)

ResumoO Senado Federal brasileiro criou uma Comissão Parlamentar de Inquérito (CPI) para investigar as irregularidades do governo Bolsonaro na gestão da pandemia da COVID‐19. Um dos casos que chamou a atenção foi a pesquisa realizada pela Prevent Senior, uma seguradora privada de saúde, sobre o tratamento precoce da COVID‐19. O artigo analisa a validade científica da pesquisa e os problemas éticos relacionados à sua implementação. Baseia‐se na análise do relatório do ensaio clínico da Prevent Senior, dos registros do ensaio clínico (...) em plataformas do Brasil e dos EUA, do relatório da CPI do Senado e nas informações divulgadas pela mídia. Esse caso de fraude científica e viés político‐ideológico exemplifica como a Prevent Senior, usando um protocolo questionável para melhorar sua reputação e ganhar o apoio do governo, foi fundamental na construção da narrativa do “tratamento precoce” para a COVID‐19, e mostra como serviu de base para uma política pública governamental que promoveu o uso de drogas ineficazes. (shrink)

Following SOX, financial restatements increased dramatically. Prior research suggests that how investors respond to restatements, particularly those involving fraud, may mitigate or exacerbate damage suffered. We extend both accounting and management research by examining the joint effects of pre-restatement managerial reputation and the announcement of managerial corrective actions in response to a restatement on nonprofessional investors’ judgments. We find that pre-restatement managerial reputation and the announcement of managerial corrective actions jointly influence investors’ managerial fraud prevention assessments, which (...) mediate their trust in management. These trust perceptions in turn affect investors’ investment and CEO retention judgments. Our results have implications for firms that are concerned with lessening the negative consequences associated with issuing a restatement. (shrink)

Privacy is widely valued, especially in individualistic cultures, because people want to control access to their bodies and to information about their personal choices. Privacy can promote a variety of goods. It can protect intimacy among friends and colleagues and create trusting relations of tolerance among strangers. Privacy can promote dignity, since it can be embarrassing to disclose secret or unconsidered thoughts or opinions, or to reveal one’s naked body or other private spaces. Privacy can also contribute to our individuality, (...) self-respect, and autonomy; and privacy can protect us from a wide array of emotional or psychological harms associated with unwanted publicity. Privacy can also further important political and legal goods, including property rights, fraud prevention, and non-discrimination. (shrink)

Privacy is widely valued, especially in individualistic cultures, because people want to control access to their bodies and to information about their personal choices. Privacy can promote a variety of goods. It can protect intimacy among friends and colleagues and create trusting relations of tolerance among strangers. Privacy can promote dignity, since it can be embarrassing to disclose secret or unconsidered thoughts or opinions, or to reveal one’s naked body or other private spaces. Privacy can also contribute to our individuality, (...) self-respect, and autonomy; and privacy can protect us from a wide array of emotional or psychological harms associated with unwanted publicity. Privacy can also further important political and legal goods, including property rights, fraud prevention, and non-discrimination. (shrink)

Interest in purchasing local food from suppliers who follow sustainable practices is growing in Canada. Such suppliers wish to have their products recognized in the market so that price premiums might be received, and new markets developed. In response, the organization Local Food Plus (LFP) developed standards and a certification process to authenticate local and sustainable claims. LFP provides certification seals, and labeling provisions for qualifying producers and processors. However, given pre-existing national food labeling rules, it is not evident that (...) existing regulations permit such claims. Using LFP as a case, this study examined whether current federal labeling rules might impede the marketing of local and sustainable claims. Key findings include that the use of the terms natural, sustainable, and local in panel language and on shelf-talkers could be contested; and that the absence of specific regulation of numerous pertinent terms means they can only be assessed against general fraud prevention regulations, resulting in case-by-case determinations of compliance. Sustainability food label approvals in Canada, based on these general provisions, have not always been favorable to sustainable producers and firms. Existing regulation of these potentially contested terms appears to be out of step with other policy-related developments at the federal level and / or conceptual developments in the field. Proposals are made for amending existing rules to better support local and sustainable claims. (shrink)

We examine cryptocurrency fraud cases prosecuted by Nigeria's Economic and Financial Crimes Commission (EFCC). We considered the lens of the Space Transition Theory (STT) in exploring the dynamics of these digital crimes. Our data analysis reveals common types of fraud, including cryptocurrency investment schemes. The results show an exclusive male demographic (100%), with the majority under 30 years old and only a quarter possessing a degree, providing insights into the socio-demographic characteristics of cryptocurrency fraudsters. Additionally, while most fraudsters (...) (55%) targeted victims in the United States, Bitcoin, leveraging blockchain technology, was the most commonly used method (46%) for cryptocurrency fraud. Our examination of the methods and mediums used for cryptocurrency fraud supports some aspects of STT, while others do not. We advocate for a multifaceted strategy that prioritises stringent regulation, implementation, and heightened scrutiny of digital currency ecosystems in Nigeria and beyond. This study contributes to the broader discourse on cybercrime prevention and enforcement by emphasising the novel methodological approach utilised. (shrink)

The clinical Bioresearch Monitoring (BIMO) oversight program of the US Food and Drug Administration (FDA) assesses the quality and integrity of data submitted to the FDA for new product approvals and human subjects protection during clinical studies. A comprehensive program of on-site inspections and data verification, the BIMO program routinely performs random inspections to verify studies submitted to the FDA to support a marketing application. On occasion the FDA will conduct a directed inspection of a specific site or study to (...) look for problems that may have previously been identified. The inspection of a clinical study sometimes uncovers evidence of research fraud or misconduct and it must be decided how to deal with the investigator and the suspect data. The prevention of [or] decreasing the incidence of fraud and misconduct through monitoring by the sponsor is one way to manage compliance issues and can help prevent misconduct. A training program is another way to manage compliance issues in clinical research. While training does not guarantee quality, it does help to ensure that all individuals involved understand the rules and the consequences of research misconduct. (shrink)

En estas páginas sólo se enumeran de manera puntual un conjunto de prejuicios políticos que están impidiendo un debate razonable sobre la democracia; aún cuando también incluyen unas consideraciones sobre algunas consecuencias prácticas que han provocado esos prejuicios. En especial, se argumentará que en América Latina (para usar este nombre genérico que oculta diferencias culturales, realidades sociales e importantes matices políticos) esos prejuicios han cultivado y justificado una comprensión y una acción política que ha resultado perjudicial para el sistema democrático; (...) al igual que desastrosa para casi todos los ciudadanos, incluidos quienes se han encargado de promoverla y liderarla. Palabras clave: América Latina; democracia; política sin reglas; prejuicios políticos; fraude; estafa; uso instrumental del poder; consecuencias prácticas; debate razonable; comprensión de la política; lenguaje político, fe pública. Politics without Rules (The Four Prejudices of Apocalypse)In the following pages I simply list a series of political prejudices which prevent a reasonable debate on democracy. I also consider some practical consequences which such prejudices have brought about. Especially, I argue that in Latin America (a generic name that masks cultural differences, social realities and important political overtones), these prejudices have encouraged and justified both an understanding and a political action that have proven not only harmful to the democratic system, but also disastrous to almost all citizens, including those who have led and promoted the former. Keywords: Latin America; democracy; politics without rules; political prejudices; fraud; scam; instrumental use of power;practical consequences; reasonable debate; understanding of politics; political language; public faith. (shrink)

We examine the dynamics between enforcement actions and the responses from both the board of directors and supervisory boards amid China's governance reform. Rather than examining determinants of fraudulent activities, we investigate, after enforcement actions are imposed, whether the board of directors and supervisory boards react differently, and whether their different reactions play a role in preventing future occurrences of frauds. We find that both boards react to enforcement actions, but only the responses from the board of directors help us (...) curb future enforcements under certain circumstances. The supervisory board fails to play any role in preventing future enforcements, even though it is one of the two monitoring mechanisms in the listed companies. Policy implications are discussed. (shrink)

The report of the Treadway Commission suggests that all public companies should establish effective written codes of conduct in promoting honorable behavior by corporations. The need for written "codes of conduct" for businesses is evident in the current literature. However, there is not sufficient evidence regarding the implication of codes of conduct in a college. Academic dishonesty has become an important issue in institutions of higher education. Codes of conduct can also provide a basis for ethical behavior in colleges and (...) universities. Survey respondents were generally supportive of the concept of codes of ethical conduct in colleges and universities. The results of this study indicate that college codes of conduct tend to follow a "low road" approach. The results also suggest the following needed improvements in college and university codes of conduct: (1) greater emphasis on preventing financial, scientific, and academic fraud; (2) more inclusion of the faculty in the process; and (3) establishment of a proper process for implementation of the code. (shrink)

ABSTRACT:Corporate governance scholarship focuses on executive malfeasance, specifically its antecedents and consequences. Academic efforts primarily focus on prevention while practitioners are often left to hold firms and executives (including directors) accountable through a variety of sanctions. Even so, executive malfeasance still occurs even in the face of the vast resources used to monitor, control, and penalize firms and executives. In this paper, we posit equity markets do not adequately penalize firms for inaccurate earnings reports. Using a sample of 129 (...) firms identified by the U.S. General Accounting Office for reporting fraudulent earnings in 10K filings, we found support for our assertion. Consequently, the one party who may benefit but escape accountability is firm shareholders. Moreover, we find little empirical evidence that the subset of firms sanctioned by the SEC is penalized more heavily than the full sample by markets at the time they report and correct their 10K filings. Our results raise serious questions whether such managerial opportunism can be eradicated given the apparent lack of consequences in equity markets for investors. We also question whether the SEC is able to discern between fraud and error in financial reporting and its implications. (shrink)

Reports of research fraud have raised concerns about research integrity similar to concerns raised about financial accounting fraud. We propose a departure from self-regulation in that researchers adopt the financial accounting approach in establishing trust through an external validation process, in addition to the reporting entities and the regulatory agencies. The general conceptual framework for reviewing financial reports, utilizes external auditors who are certified and objective in using established standards to provide an opinion on the financial reports. These (...) standards have become both broader in scope and increasingly specific as to what information is reported and the methodologies to be employed. We believe that the financial reporting overhaul encompassed in the US Sarbanes–Oxley Act of 2002, which aims at preventing accounting fraud, can be applied to scientific research in 4 ways. First, Sarbanes–Oxley requires corporations to have a complete set of internal accounting controls. Research organizations should use appropriate sampling techniques and audit research projects for conformity with the initial research protocols. Second, corporations are required to have the chief financial officer certify the accuracy of their financial statements. In a similar way, each research organization should have their vice-president of research (or equivalent) certify the research integrity of their research activities. In contrast, the primary responsibility of the existing Research Integrity Officers is to handle allegations of research misconduct, an after-the-fact activity. Third, generally accepted auditing standards specify the appropriate procedures for external review of a corporation’s financial statements. For similar reasons, the research review process would also require corresponding external auditing standards. Finally, these new requirements would be implemented in stages, with the largest 14 research organizations that receive 25% of the total National Institutes of Health funding, adopting these research oversight enhancements first. (shrink)

Corruption continues to represent a tenacious challenge to internationally active companies. According to prevailing international anti-corruption standards, a company can be held criminally liable if it does not put all necessary and reasonable organizational measures in place to prevent corruption. The regular training of employees is considered one of the most effective ways to prevent corruption. Employee training is considered helpful in efforts to minimize the risk of employees becoming involved in corrupt behavior. With this idea in mind and building (...) on the fraud triangle model and neutralization theory, this paper examines whether business professionals who have undergone anti-corruption training are more likely to reject prevailing justifications of corrupt practices than are those who have not undergone such training. The empirical analysis in this paper is based on regression models using data obtained from a unique dataset that includes 200 business professionals. The findings provide evidence that training is positively linked to the likelihood of rejecting justifications of corruption. However, the research also suggests that methods of training must become more specific in order to tackle challenging questions regarding the gray areas of ethics and compliance. (shrink)

This article considers the issue of opacity as a problem for socially consequential mechanisms of classification and ranking, such as spam filters, credit card fraud detection, search engines, news trends, market segmentation and advertising, insurance or loan qualification, and credit scoring. These mechanisms of classification all frequently rely on computational algorithms, and in many cases on machine learning algorithms to do this work. In this article, I draw a distinction between three forms of opacity: opacity as intentional corporate or (...) state secrecy, opacity as technical illiteracy, and an opacity that arises from the characteristics of machine learning algorithms and the scale required to apply them usefully. The analysis in this article gets inside the algorithms themselves. I cite existing literatures in computer science, known industry practices, and do some testing and manipulation of code as a form of lightweight code audit. I argue that recognizing the distinct forms of opacity that may be coming into play in a given application is a key to determining which of a variety of technical and non-technical solutions could help to prevent harm. (shrink)

Our aim in this study was to determine students’ and teachers’ attitudes towards cheating in assessing students’ performance. We used mixed methodology and the main research method was a case study. We aimed to describe how our respondents: 1. recognize ethical misconduct in several situations given through case studies, 2. understand the roles of each subject involved, 3. predict consequences of the EM and how they understand its possible causes, 4. create individual answers to EM or resolve problem situations. The (...) research sample of students includes participants from three basic study programs and two postgraduate programs in the field of education. A sample of teachers was obtained from a number of faculties by random selection. Our respondents have identified most forms of EM reasonably well, although in some situations, the respondents recognized other errors as EM. Therefore, the issues of ethics are not completely clear to all respondents, which leads to the conclusion that universities must organize training in this field. Both groups of respondents understand EM in a similar way, and whether it is a professor or a student who commits EM has not affected their responses. Our results suggest that it is necessary to work on the prevention of fraud by discussing the consequences, by learning ethical reasoning, by developing functional strategies of learning for the purpose of preventing fraud. (shrink)

BackgroundCodes of conduct mainly focus on research misconduct that takes the form of fabrication, falsification, and plagiarism. However, at the aggregate level, lesser forms of research misbehavior may be more important due to their much higher prevalence. Little is known about what the most frequent research misbehaviors are and what their impact is if they occur.MethodsA survey was conducted among 1353 attendees of international research integrity conferences. They were asked to score 60 research misbehaviors according to their views on and (...) perceptions of the frequency of occurrence, preventability, impact on truth (validity), and impact on trust between scientists on 5-point scales. We expressed the aggregate level impact as the product of frequency scores and truth, trust and preventability scores, respectively. We ranked misbehaviors based on mean scores. Additionally, relevant demographic and professional background information was collected from participants.ResultsResponse was 17% of those who were sent the invitational email and 33% of those who opened it. The rankings suggest that selective reporting, selective citing, and flaws in quality assurance and mentoring are viewed as the major problems of modern research. The “deadly sins” of fabrication and falsification ranked highest on the impact on truth but low to moderate on aggregate level impact on truth, due to their low estimated frequency. Plagiarism is thought to be common but to have little impact on truth although it ranked high on aggregate level impact on trust.ConclusionsWe designed a comprehensive list of 60 major and minor research misbehaviors. Our respondents were much more concerned over sloppy science than about scientific fraud (FFP). In the fostering of responsible conduct of research, we recommend to develop interventions that actively discourage the high ranking misbehaviors from our study. (shrink)

Conflicts of interest in the university context are receiving growing attention, but the focus has been largely on problematic financial COI arising from university-industry relations, which clearly need to be avoided. The result, unfortunately, is a pejorative perception of COI as being equivalent to fraud and thus an issue of academic misconduct. In this paper, the aim is to show that while some financial and non-financial COI are particularly problematic and so should be avoided, many are pervasive and actually (...) the norm in academia even if they are still largely ignored and misunderstood. Through a reflection on my own experiences as a university professor, I describe a diversity of common financial, non-financial and institutional COI of varying degrees of risk, that arise in the day-to-day activities of a professor, in order to then consider how these COI can and should be managed in practice. It is essential to attend to the full range of COI and to think about appropriate policies, procedures, or guidelines to prohibit some COI and mitigate the risks of others; but these “hard” mechanisms are only part of the solution. This paper will focus on elucidating the various “soft” mechanisms – such as education, self-awareness, humility, and dialogue – that can empower professors to manage those COI that cannot be prevented or avoided. (shrink)

Statistical evidence is pervasive in medicine. In this chapter we will focus on the reliability of randomized clinical trials (RCTs) conducted to test the safety and efficacy of medical treatments. RCTs are scientific experiments and, as such, we expect them to be replicable: if we repeat the same experiment time and again, we should obtain the same outcome (Norton 2015). The statistical design of the test should guarantee that the observed outcome is not a random event, but rather a real (...) effect of the treatments administered. However, for more than a decade now, we have been discussing a replicability crisis across different experimental disciplines including medicine: the outcomes of trials published in very prestigious journals often disappear when the experiment is repeated (see, e.g., Lehrer 2010, Begley and Ellis 2012, Horton 2015). -/- There are different accounts of the reason for this replicability crisis, ranging from scientific fraud to lack of institutional incentives to double-check someone else’s results. In this chapter we will use the replicability crisis as a thread to introduce some central issues in the design of scientific experiments in medicine. First, in section 1, we will see how replicability and statistical significance are connected: we can only make sense of the p-value of a trial outcome within a series of replications of the test. But in order to conduct these replications properly, we need to agree on the proper design of the experiment we are going to repeat. In particular, we need to prevent the preferences of the experimenters from biasing the outcome of the experiment. If there is such a bias, when the experiment is replicated by a third party, the observed outcome will vanish. In section 2, we will argue that trialists need to agree on the debiasing procedures and the statistical quality controls that feature in the trial protocol, if they want the outcome to be replicable. In section 3, we will make two complementary points. On the one hand, replicability per se is not everything: we need trial outcomes that are not only statistically significant but also clinically relevant. On the other hand, trials are not everything: the experts analyzing the evidence can improve the reliability of statistical evidence, although they sometimes fail; we need to further study how they make their decisions. In section 4, we will use a controversy about the overprescription of statins to show how non-replicable effects are obtained in trials and how experts may fail at detecting such flaws, if the commercial interests are big enough. (shrink)

The article highlights the significance of conducting public procurements electronically and how the application and development of information and communication technologies (ICT) contribute to the efficient organization of public administration and economic development. Public procurement refers to the process of acquiring products or services for any government agency in the required quantity, quality, and at the most economical cost. The growing consumer market, reduced costs, and stimulation of the country's economy further underscore the relevance of procurement, while also encouraging the (...) development of the private sector. In a digitalized world, implementing the procurement process electronically ensures the principles of efficiency, transparency, and fairness are upheld. The advancement of ICT leads to the complete digitization of the procurement process, safeguarding privacy for both purchasers and suppliers, which in turn fosters healthy competition in the procurement process. In every democratic government, steps are taken and reforms are implemented to ensure transparency in this area. International experiences are also examined, analyzing government approaches to electronic public procurement and identifying potential challenges. Additionally, the article emphasizes the steps taken in the Republic of Azerbaijan towards budget savings, fostering healthy competition, and ensuring transparency through the introduction of electronic procurement, along with the reforms implemented. The importance of the new law adopted to prevent potential issues and tender fraud is also highlighted. Finally, the article offers appropriate suggestions and recommendations for further improvements in this field. (shrink)

The superfluous and systemic problem of fraud and corruption in South African universities has intentionally paralysed internal control measures that detect and combat corruption. This reality has been aggravated by the deployment of unskilled workers in strategic positions in universities, driving the corruption agenda and frustrating those skilled quality employees capable of operating the systems that detect and combat corruption. This article explores employees’ experience and knowledge in previously disadvantaged universities relating to operating systems that enable the detection and (...) prevention of fraud and corruption. This paper further attempts to assess whether these universities employ and retain knowledgeable and quality employees who can operate these systems. The qualitative multi-case study was conducted using a sample of 20 middle and senior managers, with data collected through interviews. The study generated five themes from the research findings, which appear to have allowed the corrupt practices to occur. These include, first, intentionally paralysed internal control systems and processes; second, the deliberate employment and retention of incompetent employees; third, the inconsistent application of policies and practices which favour those driving the corruption agenda; fourth, the lack of the requisite knowledge and skills; and lastly, the absence of retention and succession plans, with those who are ethical being isolated and purged from the corrupt system. This study has not been explored previously and therefore adds value to theories and realities of corruption in universities. The research also contributes by shedding light on the extent of organised and systemic corruption in South African universities, assisting decision-makers in implementing the appropriate interventions to combat corruption. (shrink)