Abstract

The purpose of this document is to establish the fraud star theory and the formulation of its microeconomic model, based on the behavioral sciences. The methodology is a practical exploration, first in the convergence of the fraud economy and the behavioral sciences, and based on these tools, the new theory of the Fraud Star is formulated, formulating its microeconomic model. This chapter is a new model of the fraud star theory and its microeconomic modeling. There are no limitations on the model. The practical implications are applying the new fraud star theory and calculating your income, in different scenarios. The social implications are knowing the income for the crime of fraud, according to the level of regulations, control, and effective punishment. The present work is original; there is no new theory of the fraud star, nor its microeconomic model, in the academic field, only in this work.

Highlights

  • Fraudulent conduct is impulsive or rational? The swindler is impulsive or rational; following a behavioral economics guide, we can make a difference, or there will be a model of fraudulent behavior

  • Fraud is a type of corruption, with an income, it has behavioral characteristics, which is why we go through behavioral economics and convergence with a fraud economy model, to develop the model [31–35]

  • There are two types of processes in behavioral economics: “Automatical”—is defined as system 1, thinking is automatical

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Summary

Introduction

The swindler is impulsive or rational; following a behavioral economics guide, we can make a difference, or there will be a model of fraudulent behavior. The terms “standard” or “traditional” economic model or “homo economicus” are freely used when referring to views on human behavior. They do not give relevance to “behavioral” issues. The Fraud Triangle theory developed by criminologists Donald Cressey and Edwin Sutherland2 [1] explains the reasons why a person may commit fraud and determines three factors that are present at the time: pressure, opportunity, and justification or rationalization, creating the fraud triangle with its three elements (Figure 1). Does fraud, and today it is a star with seven elements which is why the Star Fraud Theory is formulated, based on the theory of behavior and the formulation of the corresponding microeconomic theory of Fraud [4–12]

Internal fraud
Outside fraud
Fraud triangle
Motivation À Opportunity À Rationalization
The fraud diamond11
Embezzlement of assets
Social rules
Method to increase the knowledge of representativeness
Set of rules, principles, and knowledge about the two processes
Capacity
Fraud disposable income
Determinants of the fraud offer
Fraud income model
Conclusions
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