Cover of: Fraud Cycles
Jiong Gong, Michael A. Williams, R. Preston McAfee

Fraud Cycles

Section: Articles
Volume 172 (2016) / Issue 3, pp. 544-572 (29)
Published 09.07.2018
DOI 10.1628/093245616X14600936934117
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  • 10.1628/093245616X14600936934117
Summary
Fraud is an ancient crime and one that annually causes hundreds of billions of dollars in losses. We develop an evolutionary theory that suggests cyclical behavior in frauds should be common. We perform a wavelet analysis of the frequencies of fraudulent and nonfraudulent offenses. Our results demonstrate that the frequencies of fraudulent offenses exhibit cyclical behavior that differs markedly from the cyclical behavior of nonfraudulent offenses.