Evasion in the conflict of laws and its possible solution in China

Evasion in private international law differs from fraud of law in domestic law, which has been generally agreed upon in academic and judicial circles. However, in China’s private international law, the theories on “evasion,” are very confusing and quite a few Chinese academicians appear more declined to accept it as natural phenomenon in conflict of laws. Similarly, both Chinese judges and legislators take a conservative approach towards it. By comparative and historical methods, the definition of evasion is to be clarified in this paper. Also, it is to argue that evasion differs from fraud of law in the context of domestic law and it is necessary to elucidate it.     

Sociolegal change in consumer fraud: From victim-offender interactions to global networks

Advances in technology have transformed fraud against consumers from face-to-face, victim-offender interactions to a crime that now transcends international boundaries. Although consumer protection issues have been of interest to investigative journalists and literary scholars for centuries, the topic has only recently been subject to serious criminological inquiry. Employing the American consumer protection movement as an historical framework, we examine the evolution of consumer fraud. Our review documents that progressive social and legal changes in consumer protection and corporate regulation, as well as developments in criminological research, correspond to prominent literary exposés of the time. In today's technological age, such a reactive response to consumer fraud is neither efficient nor effective. Contemporary criminologists need to simultaneously address the questions of ‘how’ fraud is perpetrated and ‘why’ it occurs. Toward this end, we identify methodological strategies and data sources to promote empirical and theoretical understanding of consumer fraud, and to ultimately contribute to multi-national crime control policy.     

Digital Analysis of Crime Statistics: Does Crime Conform to Benford’s Law?

Benford’s law suggests that the distribution of leading (leftmost) digits in data of an anomalous nature (i.e., without relationship) will conform to a formula of logarithmic intervals known as the Benford distribution. Forensic auditors have successfully used digital analysis vis-à-vis the Benford distribution to detect financial fraud, while government investigators have used a corollary of the distribution (focused on trailing digits) to detect scientific fraud in medical research. This study explored whether crime statistics are Benford distributed. We examined crime statistics at the National, State, and local level in order to test for conformity to the Benford distribution, and found that National- and State-level summary UCR data conform to Benford’s law. When National data were disaggregated by offense type we found varying degrees of conformity, with murder, rape, and robbery indicating less conformity than other offense types. Some tentative implications of these findings are discussed, as are areas for further research.     

And justice for all? Investigators’ perceptions of punishment for fraud perpetrators

Despite extensive financial losses and other indicators of harm, the American public and legal professionals have historically been ambivalent toward white-collar crime. Recent research demonstrates that public perceptions of white-collar crime and attitudes toward the punishment of white-collar offenders have become more punitive. Along these lines, a neglected area of research concerns those individuals who routinely face white-collar crimes: fraud investigators. Using data collected during the height of recent corporate scandals (2001–02), this study examines the perceptions of 663 fraud investigators and extends prior research by considering the influence of investigator characteristics, organizational context (i.e., size, setting, internal controls, and resource capacity), case characteristics (i.e., offense type, financial loss, and sanction), and offender characteristics on legal professionals’ general and specific punishment perceptions. Results indicate that organizational resources increase the likelihood of both outcomes. Additionally, the correlates of general and specific punishment perceptions are found to differ: government agency context influences general but not specific perceptions. Comparatively, the perception that fraud is increasing and a sanction that includes incarceration each have a significant, positive influence on specific punishment perceptions. Implications of these findings for future research and policy are discussed.

---

Coordinating individual and organisational responses to fraud

Crimes involving dishonesty, collectively known as fraud, have been estimated to cost developed nations many billions of dollars each year. The last decade has seen the creation of an extensive range of responses to this problem by government and business alike, some of which are beginning to bear fruit. But much remains to be done—particularly concerning the coordination of the many preventive and response strategies being used by public and private sector organisations. This article outlines current avenues of fraud reporting that individuals and organisations use, examines the extent of reporting, and considers the various barriers that exist to reporting fraud. The focus is primarily on Australia, although the issues have relevance to many other countries. It is argued that there are various approaches that could be developed to encourage greater reporting of fraud, and that a nationally coordinated response would assist those who make official reports, and enable information to be gathered which may assist in the development of improved fraud prevention strategies and interventions. The views expressed in this article are those of the author alone and not the Australian Government.     

OLAF’s role in the fight against fraud in the European Union: do too many cooks spoil the broth?

This article discusses the role of OLAF in the fight against fraud in the European Union (EU) by examining (1) its powers and capacity to coordinate the activities of anti-fraud agencies in the twenty seven member states and (2) the constraints which prevent OLAF from operating in a more effective manner. It also analyses OLAF’s relationship with other transnational agencies such as Eurojust and Europol and highlights the degree of fragmentation which exists among the many actors involved in the fight against fraud, a fragmented legal approach and the difficulties this presents in attempting to police sophisticated transnational frauds. The effect of EU expansion on this situation is considered and the support offered to new member states who have been asked to bring their anti-fraud structures up to the standards of existing members within a very short period of time is also examined. The efforts of Romania in seeking to build up anti-fraud structures and systems are discussed in some detail. This article concludes that despite the best efforts of the actors involved, a fragmented legal system and institutions have hampered the fight against fraud in the EU.     

Credit card fraud under Chinese criminal law

Credit card fraud is a new type of fraud amended into the Criminal Law of China in 1997. The “credit card” under credit card fraud is interpreted as a very board concept, which includes debit card and virtually all electronic payment cards used in ordinary payment, credit loan, transfer and settlement of account, cash deposit and withdrawal. Therefore, it is necessary for the legislature to revise “credit card” under this special fraud into “electronic payment card,” and “credit card fraud” into “electronic payment card fraud,” which will be understood easily and precisely. “Use” and “fraudulent use” of credit card under this fraud is defined as ordinary use of credit card, including withdrawal cash with authentic or forged credit card from ATMs. It is unreasonable to define “malicious overdraft” as a form of credit card fraud under the Chinese Criminal Law. In the future amendment, this kind of criminal conduct shall be separated as independent named as “malicious overdraft” or “abuse of credit card” under the Criminal Law with less stiff statutory punishment than that of credit card fraud. Besides, under the Chinese Criminal Law, stealing credit card and using it is held as “theft,” which is neither reasonable nor logical. Therefore, it should be revised in the future criminal law.     

Solicitation of information and recommendations for developing OIG compliance program guidance for the durable medical equipment industry--HHS. Notice

This Federal Register notice seeks the input and recommendations of interested parties into the OIG's development of a compliance program guidance for the durable medical equipment (DME) industry, its providers and suppliers. Many providers and provider organizations have expressed an interest in better protecting their operations from fraud and abuse. Previously, the OIG has developed compliance program guidances for hospitals, clinical laboratories and home health agencies. In order to provide clear and meaningful guidance to those segments of the health care industry involved in the supply and distribution of DME, we are soliciting comments, recommendations and other suggestions from concerned parties and organizations on how best to develop compliance program guidance and reduce fraud and abuse within the DME industry.     

Publication of the OIG model compliance plan for clinical laboratories--HHS. Notice

This Federal Register notice sets forth the recently issued model compliance plan for clinical laboratories developed by the Office of Inspector General in cooperation with, and input from, several provider groups and industry representatives. Many providers and provider organizations have expressed an interest in better protecting their operations from fraud through the adoption of compliance plans. We believe the development of this initial model compliance plan for clinical laboratories will serve as a positive step towards promoting a higher level of ethical and lawful conduct throughout the health care industry.     

Publication of the OIG compliance program guidance for hospitals--OIG. Notice

This Federal Register notice sets forth the recently issued compliance program guidance for hospitals developed by the Office of Inspector General (OIG) in cooperation with, and with input from, several provider groups and industry representatives. Many providers and provider organizations have expressed an interest in better protecting their operations from fraud and abuse through the adoption of voluntary compliance programs. The first compliance guidance, addressing clinical laboratories, was prepared by the OIG and published in the Federal Register on March 3, 1997. We believe the development of this second program guidance, for hospitals, will continue as a positive step towards promoting a higher level of ethical and lawful conduct throughout the health care industry.     

Networks of organised black market labour in the building trade

The building industry is a sector characterised by a large number of opportunities to commit economic crime. In Sweden, the level of tax avoidance in the building trade is estimated to be substantial, and the use of black market labour extensive. This article focuses on the organised use of black market labour in the building industry, which may be described as a form of both economic and organised crime. To date only a very small number of criminological studies have examined the use of black market labour in this sector of the economy. The article focuses on two of the central roles found in the context of organised, black market labour: the “fixer” and the “criminal entrepreneur”. The fixer is an individual with expertise in the methods of economic crime. The criminal entrepreneur acts first and foremost as a link between a client and the manpower required by this client. In this paper, fixers and criminal entrepreneurs are studied on the basis of data from the Swedish Register of Suspected Offenders. The analysis shows that the networks of fixers and criminal entrepreneurs overlap one another to some extent. There are nonetheless a number of differences between the two groups and also between their respective networks. The networks of the fixers are larger than those of the criminal entrepreneurs, and the individuals that comprise the fixers’ networks are suspected in connection with much larger numbers of offences. The fixers more often commit offences together with others and also have larger numbers of suspected co-offenders than the criminal entrepreneurs. On the other hand, the criminal entrepreneurs are suspected of having maintained their ties to suspected co-offenders for longer periods of time than the fixers. The fixers appear to specialise in fraud and forgery offences, whereas motoring offences, smuggling and drug offences are more common among the criminal entrepreneurs. The networks are highly male-dominated and on balance they are comprised of much older individuals than those of traditional offenders. Many of the fixers and criminal entrepreneurs are suspected of committing offences with the same co-offender for a long period of time. Further out in the networks, co-offenders are replaced more often. Tax offences are very common in both types of network, both in those parts of the network that are close to the fixers and criminal entrepreneurs, and also in more distant parts of the networks. In the more distant parts of the networks, there is also an increase in the proportion of offences that individual network members are suspected of committing. Judging from the material examined in the current study, violent offences do not appear to be very common among either fixers or criminal entrepreneurs. The networks examined are largely comprised of individuals suspected of economic offences. These individuals are linked together with one another by means of direct and indirect contacts that produce semi-legal networks of individuals with knowledge of organised black market labour.

Online victimization risk and self-protective strategies: developing police-led cyber fraud prevention programs

ABSTRACT

The prevalence and impact of cyber fraud continues to increase exponentially with new and more innovative methods developed by offenders to target and exploit victims for their own financial reward. Traditional crime reaction methods used by police have proved largely ineffective in this context, with offenders typically located outside of the police jurisdiction of their victims. Given this, some police agencies have begun to adopt a victim focused, crime prevention approach to cyber fraud. The current research explores with a sample of two hundred and eighteen potential cyber fraud victims, the relationship between online victimization risk, knowledge and use of crime prevention strategies. The study found those most at risk of cyber fraud victimization despite accurate perceptions of risk and knowledge of self-protective behaviors in the online environment underutilise online prevention strategies. This research has important implications for police agencies who are designing and delivering cyber fraud education. It provides guidance for the development of effective prevention programs based on practical skills development.     

Studying the correlates of fraud victimization and reporting

Little is known about the correlates of white-collar victimization, and even less is known about white-collar crime reporting. In this article, the extent to which predictors of fraud victimization are the same as the predictors of fraud reporting is examined. Using a national sample of fraud victims, these findings were consistent with prior research in that involvement in risky behaviors and age were found to be important predictors of fraud victimization. Additionally, the specific factors that are influential in predicting fraud victimization appear to vary across offense type. Unfortunately, little was revealed regarding the predictors of the official reporting of fraud victimizations. Future research needs to further unravel the importance of risky behavior in both victimization and reporting, as well as to focus on a broader array of white-collar crimes.     

Healthcare fraud and quality of care: a patient-centered approach

This Article explores the intersection between quality of care and healthcare fraud by examining the extent to which quality-related fraud settlements benefit patients. The author argues that, although the protection of beneficiary health and welfare often is invoked by the federal government as one of the reasons for undertaking anti-fraud efforts, such considerations do not appear to play a large role in many of the settlements that are negotiated. While returning funds to the federal Treasury helps to ensure that the federal healthcare programs remain solvent and continue to serve beneficiaries in the aggregate, it may not adequately address harm to individual patients. Thus, the author concludes it may be time to explore new models of fraud settlements that can provide adequate compensation to the patients who may have suffered harm.     

Assessing law enforcement preparedness to address Internet fraud

Recent societal concern regarding computer crime was well documented in the research literature. To date, however, modest research addressed how large, local police and sheriff's departments confront Internet fraud. Using data collected from surveys distributed to the seven hundred largest police- and sheriff's departments, the present article addresses law enforcement: (1) preparedness to enforce Internet fraud crimes; (2) perceptions of Internet fraud; (3) cooperative policing efforts; and (4) Internet fraud information dissemination practices. Among other things, results suggested that individuals within these departments believed Internet fraud was problematic, although they lacked the resources to properly address the problem. These results are discussed as they relate to the organizational design of law enforcement agencies and their potential to adapt to innovative crimes. Suggestions are offered for a more effective approach to confronting Internet fraud.     

Mortgage fraud: A risk factor analysis of affected communities

Mortgage fraud is a fast-growing form of white-collar crime that has received much press coverage in the United States of America. Mortgage fraud has an adverse effect on individual homeowners, communities, and many indirect victims of the crime. While past research has focused on the personal motivating factors behind the commission of white-collar crime, this particular article reviews several facets of the crime itself and explores the potential neighbourhood risk factors that help attract the crime. From a national perspective, mortgage fraud seems to occur more frequently in neighbourhoods that have low socioeconomic indicators. These associations become even more pronounced when the degree of fraud occurrences within the community is factored in as a variable. Upon disaggregating the data according to region, the fraud indicator variables also display differing trend levels, perhaps indicating that as mortgage fraud practices begin to mature within an area, its community dynamics tend to change as well. The article concludes with recommendations for policymakers, community organizations, and law enforcement officials as to how to address mortgage fraud once it appears within a community, and also addresses future avenues of research for what is largely an untapped area of financial crime research.     

Differentiating identity theft: An exploratory study of victims using a national victimization survey

Despite the widespread attention given to identity theft, there is much confusion on how best to define and measure it. Recent attempts to measure its extent through victimization surveys or law enforcement files have varied considerably in the types of crimes included as identity theft. Some studies include credit card fraud, while others exclude it. This inconsistency in data collection has made it difficult to assess properly the extent of the crime. The current study uses data from the National Public Survey on White Collar Crime to determine the degree to which including credit card fraud as a type of identity theft affects victim profiles encompassing demographic characteristics, risky activities, and reporting decisions. Specifically, we compare victim profiles for victims of existing credit card fraud, new credit card fraud, and existing bank account fraud. Findings from our exploratory study suggest that including existing credit card fraud may obscure the fact that those who are female, black, young, and low income are disproportionately victimized by existing bank account fraud, which is the type of identity theft most financially damaging and most difficult to clear up for individuals.     

White collar crimes and casino gambling: looking for empirical links to forgery,embezzlement, and fraud

This study investigates the alleged link between casino gambling and arrests for the commission of the “white collar” crimes of forgery, fraud, and embezzlement. The rapid expansion of casino gaming venues in recent years has been said to have increased the incidence of white collar crimes by casino customers who get themselves in financial trouble by overspending at casinos (given the median age of 47 for casino patrons and that 41% hold white collar jobs). This study investigates this question by using several kinds of data to examine arrest and offender trends, using a follow-up period of up to 10 years to assess long-term impacts. The results indicate that, comparing pre- and post-casino average annual arrests for embezzlement, forgery, and fraud, trends show a general decrease in arrests in casino jurisdictions, although embezzlement arrests rose in Connecticut and in nationwide statistics. An assessment of the reasons offered from interviews with people convicted of embezzlement and fraud are presented to examine the extent to which gambling is a causal factor.

---

Dating hot spot to fraud hot spot: Targeting the social characteristics of romance fraud victims in England and Wales

Research Summary

We found that romance fraud was rising year-on-year across every region in England and Wales, increasing 55% during the 3 years between October 2018 and October 2021. Fifty percent of all the romance fraud victims in the period resided in 17% of the places where romance fraud had occurred. A total of 439 locations (outward postcode areas) were identified as the “power few” in the first year of the data set. Of these 439 locations, 162 of them recurred in both of the following years, becoming chronic “hot spot” locations containing more than one in six of all reported romance fraud victims. The demography of victims in repeat locations differed considerably, but hot spots were more frequently predominantly populated by less affluent populations.

Policy Implications

We conclude that the current national one-size-fits-all fraud prevention approach may not be the most efficient or effective way to reach those victims who most require crime prevention advice. The National Fraud Intelligence Bureau, based in the City of London Police, could adopt a tailored approach to providing preventative information to local police forces based on the year-to-year patterns in crime and the associated intelligence provided by sociodemographic data sources such as Acorn.