The Liminality of Fraud: Reimagining Fraud Theory to Inform Financial Crime Prevention

Abstract

Utilizing knowledge from academics, practitioners and subject matter experts with lived experience of fraud, this paper offers four significant contributions to fraud theory. Firstly, we argue that fraudsters seek out liminal spaces. Secondly, the paper identifies that fraudsters do not always seek immediate financial gain. Thirdly, we argue that within liminal space, individuals are transformed into fraud victims or potentially ‘co-offenders’ used to target businesses. By understanding the importance of liminality for the success of fraudulent interactions, we propose that both on and offline spaces that are vulnerable to facilitating fraud can be identified. Finally, we make the argument that aspects of situational crime prevention can be utilized within liminal spaces at key points to prevent fraud.