A longitudinal assessment on the development of financial fraud offending
ISSN: 1359-0790
Article publication date: 10 June 2020
Issue publication date: 7 December 2020
Abstract
Purpose
Fraudulent behaviors have a significant influence on society, impact millions of citizens and result in billions of dollars in losses. Consequently, it is essential to understand the potential correlates and causes of financial fraud offending. To date, however, there has not been much research examining the developmental origins to financial fraud offending. The purpose of this study is to address this gap in the literature.
Design/methodology/approach
Longitudinal data drawn from the National Longitudinal Study of Adolescent to Adult Health were analyzed. The measures of socialization and individual differences were assessed in adolescence, and then examined to determine whether they predicted the odds of credit card and check frauds in adulthood.
Findings
The results revealed that the measures of parental socialization were unrelated to later-life financial fraud. Associating with delinquent peers was associated with financial fraud in some of the models as was low self-control and nonviolent propensities.
Practical implications
In this study, the authors discuss the implications of the current study and offer suggestions for future research.
Originality/value
To the best of authors’ knowledge, this is one of the first studies to examine the developmental unfolding of fraud offending in a nationally representative sample.
Keywords
Acknowledgements
This research uses data from Add Health, a program project directed by Kathleen Mullan Harris and designed by J. Richard Udry, Peter S. Bearman and Kathleen Mullan Harris at the University of North Carolina at Chapel Hill. It funded by grant P01-HD31921 from the Eunice Kennedy Shriver National Institute of Child Health and Human Development, with cooperative funding from 23 other federal agencies and foundations. Special acknowledgment is due to Ronald R. Rindfuss and Barbara Entwisle for assistance in the original design. Information on how to obtain the Add Health data files, which are available on the Add Health website (www.cpc.unc.edu/addhealth). No direct support was received from grant P01-HD31921 for this analysis.
Citation
Rima, D., Yerbol, A., Ali, B., Liliya, B. and Beaver, K. (2020), "A longitudinal assessment on the development of financial fraud offending", Journal of Financial Crime, Vol. 27 No. 4, pp. 1173-1189. https://doi.org/10.1108/JFC-04-2020-0059
Publisher
:Emerald Publishing Limited
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