Abstract
Occupational fraud (internal or employee fraud) continues to be a major global issue across organisations that erodes trust and causes significant reputational and financial harm. Recent data from the Association of Certified Fraud Examiners (ACFE) Report to the Nations 2024 emphasises the gravity of this issue, estimating that organisations worldwide lose around 5% of their annual revenue to occupational fraud, amounting to more than USD 5 trillion each year. The report further notes that the median loss per occupational fraud case is approximately USD 145,000, while the average loss exceeds USD 1.7 million.Occupational fraud remains a systematic problem, often correlated with weak internal controls, governance structure and organisational culture. Considering the complexity, this thesis investigates the dynamics of occupational fraud in family and non-family businesses by adopting a mixed-method research methodology that combines qualitative understandings with quantitative rigour.
The qualitative element of the research involved performing semi-structured interviews with experts in the field (e.g., Certified Fraud Examiners, Auditors, and Fraud Investigators) and offered a comprehensive, detailed picture of the lived reality of occupational fraud. Applying Braun and Clarke's (2006) six-phase thematic analysis, the study finds that occupational fraud is frequently viewed as a systemic failure rather than a singular occurrence. During the interview, experts expressed how informal governance structures in family businesses can help conceal fraudulent activities. However, they also expressed how rigid, formalised procedures in non-family businesses can be ineffective in preventing such malpractices due to operational oversights. The qualitative findings emphasise the intertwined nature of trust, culture, and organisational integrity.
Building on the rich qualitative insights, the quantitative phase of the research utilises a uniquely designed survey instrument distributed to experts in the field (e.g., Certified Fraud Examiners, Auditors, and Fraud Investigators) to gain insights on family and non-family businesses. Various statistical analyses are conducted, i.e., regression, factor analysis, and empirical validation, are offered for the constructs identified in the interviews. The regression analysis reveals that critical predictors, such as internal controls, organisational culture, and elements of the Fraud Triangle (motivation, rationalisation, and opportunity), are statistically significant in determining fraud outcomes in family and non-family businesses. Factor analysis further uncovers inherent dimensions, confirming that occupational fraud experiences differ depending on the business context.
The contributions of this research are multifaceted. Academically, it enriches the literature on occupational fraud by developing a conceptual visual synthesis (Figure 19) that integrates thematic findings from both qualitative and quantitative data. Rather than proposing a process-driven or causal framework, the model offers an interpretive representation of how contextual and systemic elements co-occur to shape occupational fraud risk across family and non-family businesses. Practically, the findings illuminate the critical need for tailored fraud prevention strategies, highlighting that strategies effective in family businesses may not directly translate to non-family settings due to their structural and cultural distinctions.
This research provides empirical evidence into the complex world of occupational fraud, providing valuable insights that bridge academic theory and practical application, ultimately promoting a deeper understanding of safeguarding organisational integrity in diverse business environments.
| Date of Award | 3 Dec 2025 |
|---|---|
| Original language | English |
| Supervisor | Simone Kelly (Supervisor) & Tim Hasso (Supervisor) |
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