An Examination of Occupational Fraud Committed by Information Technology Professionals

Abstract

ABSTRACT To keep up with the demands from increasingly complex systems, information technology (IT) departments have sought IT professionals and frequently provided these individuals with privileged access to organizational systems early in their tenure. This study uses survey data obtained from the Association of Certified Fraud Examiners (ACFE) Research Institute, to examine occupational frauds committed by IT professionals versus frauds committed by non-IT personnel. The differences between IT and non-IT personnel can have an impact on organizational fraud. Findings show that IT perpetrators engage in fraud earlier in their tenure and generate similar losses to their non-IT counterparts but in shorter time frames. Organizational managers and forensic accountants should be aware of these important differences and consider the use of monitoring controls, such as management reviews of access and user activity, to detect fraud committed by IT perpetrators. This study provides several suggestions for future research in this vein. Data Availability: Data are available from the Association of Certified Fraud Examiners (ACFE). JEL Classifications: M480; L860; L250.