Advancing theory of fraud: the S.C.O.R.E. model

TLDR

The paper seeks to advance fraud theory by updating existing models and introducing the S.C.O.R.E. framework to better explain the factors that drive individuals to commit fraud. The authors review the fraud triangle, diamond, scale, and MICE models, then extend them—adding collusion and other contemporary factors—to construct the S.C.O.R.E.

Abstract

Purpose This paper aims to elaborate on the theory of fraud by enhancing the existing theories behind the factors that force people to commit fraud. Design/methodology/approach The paper reviews the most commonly used and widely accepted models for explaining why people commit fraud – the fraud triangle, the fraud diamond, the fraud scale and the MICE model. The author argues that these models need to be updated to adapt to the current developments in the field and the ever-growing fraud incidents, both in frequency and severity, and builds on the theoretical background to create a new model so as to enhance the understanding behind the major factors which lead to the commitment of fraud. Findings The author identifies a major element – ego – which plays a crucial role in compelling people to commit fraud and concludes in the formation of the S.C.O.R.E. model, which is graphically depicted in the fraud pentagon. He goes further by adding the factor collusion to better apply in cases of white-collar crimes. Originality/value The paper develops the S.C.O.R.E. model to contribute to the development of fraud theory by identifying the key factors that play a major role in whether fraud will actually occur and acting as a theoretical benchmark for all future reference.