Dr. Kelly Richmond Pope on Scams, Stories & Secrets
Aug 17, 2023
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Dr. Kelly Richmond Pope, an expert in forensic accounting, discusses scams, stories, and secrets behind fraud. She explores what drives people to commit fraud and the motivations of whistleblowers. The impact on victims, the importance of catching small incidents of fraud, and the role of technology in preventing fraud are also discussed. She challenges the misconception that only evil people commit fraud and emphasizes the need for a comprehensive understanding of fraud and its motivations.
Fraud is not limited to intentional acts of deception and can be committed by anyone.
Understanding the psychology and motivations of perpetrators can help prevent and detect fraud.
Supporting and understanding whistleblowers is crucial in exposing fraud and promoting justice.
Deep dives
The Trillion Dollar Industry of Fraud
The podcast episode explores the topic of fraud as a trillion dollar industry and highlights the various aspects of human decision-making that contribute to fraud. The guest, Dr. Kelly Richmond Pope, provides insights into the psychology and motivations of perpetrators, as well as the role of whistleblowers. The episode emphasizes that fraud is not limited to intentional acts of deception and discusses the categories of accidental and righteous perpetrators. By sharing real-life stories and examples, the podcast challenges the notion that fraud is only committed by inherently bad or criminal individuals.
The Importance of Context in Understanding Fraud
The podcast stresses the need for context in comprehending fraud cases. It emphasizes that underlying emotions, motivations, and personal circumstances contribute to individuals becoming involved in fraudulent activities. By examining the stories of both perpetrators and whistleblowers, the podcast encourages empathy and a deeper understanding of the decision-making processes that lead to fraud. It suggests that a more nuanced understanding of fraud can help foster a more effective approach to prevention and detection within organizations.
The Role of Storytelling in Fraud Education
The podcast highlights the importance of effective communication and storytelling in educating individuals about fraud. It discusses the use of real-life stories, field trips, and engaging teaching methods to promote a deeper understanding of fraud and its impact. By bringing in guest speakers, conducting interviews, and incorporating real-world examples, the podcast emphasizes the value of experiential learning and encourages listeners to reflect on their own behaviors and potential susceptibility to fraud. It also challenges traditional training approaches, advocating for more scenario-based training that allows individuals to identify with different types of perpetrators and whistleblowers.
Different Categories of Whistleblowers
The podcast discusses the different categories of whistleblowers, including accidental whistleblowers, vigilante whistleblowers, and noble whistleblowers. Accidental whistleblowers stumble upon fraud or unethical behavior and may not report immediately, but eventually do. Vigilante whistleblowers are always on the lookout for any wrongdoing and report even if it doesn't directly affect them. Noble whistleblowers are those who step out and report unethical behavior, often facing resistance from their colleagues. The podcast emphasizes the importance of understanding and supporting whistleblowers, as they play a vital role in exposing fraud and promoting justice.
Fraud in Society and the Role of Technology
The podcast explores the prevalence of fraud in society, driven by factors such as inequalities, pressure for instant gratification, and the ramifications of social media. It discusses how technology and social media have contributed to creating an environment where fraud is more likely to occur. The podcast emphasizes the importance of recognizing the impact of economic challenges, personal circumstances, and social activism on people's willingness to engage in fraudulent activities. Furthermore, it highlights the need for understanding the complexities of human behavior and the role of lying in committing fraud. Overall, the podcast portrays fraud as a consequence of societal structures, human behavior, and individual perception.
Why drives people to commit fraud? What turns people into whistleblowers? How does fraud impact victims? On this episode, I'm exploring the scams, stories and secrets behind fraud.
My guest is Dr. Kelly Richmond Pope. She's the Dr. Barry Jay Epstein Endowed Professor of Forensic Accounting at DePaul University in Chicago and a nationally recognized expert in risk, forensic accounting, and white-collar crime research.
Her expertise lies in understanding and identifying financial fraud risk within financial statements assessing corporate culture and compliance systems designed to confront internal control challenges.
She’s also the author of a new book called ‘Fool Me Once’, a book that, in her words, "explores what makes perpetrators tick, victims so gullible, and whistleblowers so morally righteous".
It also forces the person reading it to consider their own behaviour because, as Kelly highlights, we are all capable of committing fraud.
In our discussion, we explore:
how she became interested in fraud and the human factors behind it;
why people commit fraud and the fact that we are all capable of fraud
what drives whistleblowers and how not all whistleblowers have the same motivation;
the impact on victims of fraud;
how story-telling can help to reduce fraud and make people more aware of it;
the importance of catching small incidents of fraud to prevent larger ones;
how technology enables — and helps prevent — fraud;
whether fraud is always a bad thing
and so much more...
To find out more about Kelly and 'Fool Me Once' visit https://www.kellyrichmondpope.com/
To read sample chapters of my new book 'Humanizing Rules - Bringing Behavioural Science to Ethics & Compliance' - www.humanizingrules.com
If you enjoyed this episode, do also listen to the episodes featuring Kelly Paxton, who specialises in Pink Collar Crime (PCC), a form of fraud:
Kelly's first appearance on the show in 2020 talking about PCC: https://www.humanriskpodcast.com/kelly-paxton-on-pink-collar-1/
Kelly's second appearance in 2021 talking about how COVID has impacted PCC: https://www.humanriskpodcast.com/kelly-paxton-on-pink-collar/
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