38 Pages Posted: 19 Feb 2011 Last revised: 15 Feb 2014
Date Written: February 14, 2014
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 non-fraudulent offenses. Our results demonstrate that the frequencies of fraudulent offenses exhibit cyclical behavior that differs markedly from the cyclical behavior of non-fraudulent offenses.
Keywords: fraud, cycle, steady state, wavelet
JEL Classification: G38, L2, M49
Suggested Citation: Suggested Citation