Theoretical Synthesis of Fraud Models (Fraud Triangle, Diamond, Pentagon, and Hexagon) in Developing a Predictive Framework for Organizational Fraud Prevention in the Digital Era
Keywords:
Fraud Theory, Fraud Hexagon, Fraud Prevention, Digital Governance, Predictive Framework
Abstract
This study aims to synthesize the development of the Fraud Triangle, Fraud Diamond, Fraud Pentagon, and Fraud Hexagon models to develop a predictive framework for organizational sustainability in the digital era. The study uses a qualitative approach with a conceptual literature study design through the identification, comparison, and synthesis of literature on fraud theory and digital transformation. The results show that each model has complementary contributions in explaining the causes of fraud. This synthesis produces a Predictive Fraud Prevention Framework that integrates behavioral factors, governance, internal control, collusion, and digital technology as a basis for more proactive fraud prevention. This framework is intended to serve as a foundation for the development of empirical research and the implementation of risk-based anti-fraud systems in digital organizations.
References
ACFE. (2026). Occupational Fraud 2026: A Report to the Nations. Association of Certified Fraud Examiners.
AICPA. (2002). Statement on Auditing Standards No. 99: Consideration of Fraud in a Financial Statement Audit. American Institute of Certified Public Accountants.
Albrecht, W. S., Howe, K. R., & Romney, M. B. (1984). Deterring Fraud: The Internal Auditor's Perspective. Institute of Internal Auditors Research Foundation.
Aprilia, N., Putri, D., & Hidayat, A. (2023). Pengaruh Fraud Pentagon terhadap financial statement fraud pada perusahaan publik. Jurnal Akuntansi dan Keuangan, 25(2), 145–160.
Association of Certified Fraud Examiners. (2024). Occupational Fraud 2024: A Report to the Nations. Association of Certified Fraud Examiners.
Brennan, N. M., & McGrath, M. (2022). Digital transformation, corporate governance, and fraud risk: A literature review. Journal of Financial Crime, 29(4), 1203–1221.
COSO, & ACFE. (2023). Fraud Risk Management Guide (2nd ed.). Committee of Sponsoring Organizations of the Treadway Commission & Association of Certified Fraud Examiners.
Cressey, D. R. (1953). Other People's Money: A Study in the Social Psychology of Embezzlement. Free Press.
Crowe Horwath. (2011). Why the Fraud Triangle Is No Longer Enough. Crowe Horwath LLP.
Dorminey, J., Fleming, A. S., Kranacher, M. J., & Riley, R. A. (2012). The evolution of fraud theory. Issues in Accounting Education, 27(2), 555–579.
Free, C. (2015). Looking through the fraud triangle: A review and call for new directions. Meditari Accountancy Research, 23(2), 175–196.
Kurshan, E., Shen, H., & Yu, H. (2021). Financial crime and fraud detection using graph computing: Application considerations and outlook. arXiv. https://arxiv.org/abs/2103.01854
Marks, J. (2012). The Mind Behind the Fraudsters Crime: Key Behavioral and Environmental Elements. Crowe Horwath LLP.
OECD. (2023). OECD Digital Economy Outlook 2023. Organisation for Economic Co-operation and Development.
PCAOB. (2024). AS 2401: Consideration of Fraud in a Financial Statement Audit. Public Company Accounting Oversight Board.
Pratama, A., & Haryanto, H. (2021). Pengaruh capability dan opportunity terhadap fraud korporasi. Jurnal Akuntansi Multiparadigma, 12(3), 421–437.
Rahman, A., & Anwar, S. (2023). Collusion as a determinant of fraud in public sector organizations. Jurnal Akuntansi dan Auditing Indonesia, 27(1), 45–58.
Said, J., Omar, N., & Yusuf, S. N. S. (2023). Fraud risk in the era of digital transformation: Challenges and opportunities. Journal of Financial Crime, 30(2), 389–406.
Sari, D., & Nugroho, R. (2022). Analisis Fraud Hexagon dalam mendeteksi financial statement fraud. Jurnal Akuntansi Indonesia, 11(2), 115–130.
Tessa, C., & Harto, P. (2016). Fraudulent financial reporting: Pengujian teori Fraud Pentagon pada perusahaan publik di Indonesia. Diponegoro Journal of Accounting, 5(2), 1–15.
Vousinas, G. L. (2019). Advancing theory of fraud: The S.C.O.R.E. model. Journal of Financial Crime, 26(1), 372–381. https://doi.org/10.1108/JFC-12-2017-0128
Wells, J. T. (2017). Corporate Fraud Handbook: Prevention and Detection (5th ed.). Wiley.
Wolfe, D. T., & Hermanson, D. R. (2004). The fraud diamond: Considering the four elements of fraud. The CPA Journal, 74(12), 38–42.
Zweers, B., Dey, D., & Bhaumik, D. (2025). The AI-Fraud Diamond: A novel lens for auditing algorithmic deception. arXiv. https://arxiv.org/abs/2508.13984
AICPA. (2002). Statement on Auditing Standards No. 99: Consideration of Fraud in a Financial Statement Audit. American Institute of Certified Public Accountants.
Albrecht, W. S., Howe, K. R., & Romney, M. B. (1984). Deterring Fraud: The Internal Auditor's Perspective. Institute of Internal Auditors Research Foundation.
Aprilia, N., Putri, D., & Hidayat, A. (2023). Pengaruh Fraud Pentagon terhadap financial statement fraud pada perusahaan publik. Jurnal Akuntansi dan Keuangan, 25(2), 145–160.
Association of Certified Fraud Examiners. (2024). Occupational Fraud 2024: A Report to the Nations. Association of Certified Fraud Examiners.
Brennan, N. M., & McGrath, M. (2022). Digital transformation, corporate governance, and fraud risk: A literature review. Journal of Financial Crime, 29(4), 1203–1221.
COSO, & ACFE. (2023). Fraud Risk Management Guide (2nd ed.). Committee of Sponsoring Organizations of the Treadway Commission & Association of Certified Fraud Examiners.
Cressey, D. R. (1953). Other People's Money: A Study in the Social Psychology of Embezzlement. Free Press.
Crowe Horwath. (2011). Why the Fraud Triangle Is No Longer Enough. Crowe Horwath LLP.
Dorminey, J., Fleming, A. S., Kranacher, M. J., & Riley, R. A. (2012). The evolution of fraud theory. Issues in Accounting Education, 27(2), 555–579.
Free, C. (2015). Looking through the fraud triangle: A review and call for new directions. Meditari Accountancy Research, 23(2), 175–196.
Kurshan, E., Shen, H., & Yu, H. (2021). Financial crime and fraud detection using graph computing: Application considerations and outlook. arXiv. https://arxiv.org/abs/2103.01854
Marks, J. (2012). The Mind Behind the Fraudsters Crime: Key Behavioral and Environmental Elements. Crowe Horwath LLP.
OECD. (2023). OECD Digital Economy Outlook 2023. Organisation for Economic Co-operation and Development.
PCAOB. (2024). AS 2401: Consideration of Fraud in a Financial Statement Audit. Public Company Accounting Oversight Board.
Pratama, A., & Haryanto, H. (2021). Pengaruh capability dan opportunity terhadap fraud korporasi. Jurnal Akuntansi Multiparadigma, 12(3), 421–437.
Rahman, A., & Anwar, S. (2023). Collusion as a determinant of fraud in public sector organizations. Jurnal Akuntansi dan Auditing Indonesia, 27(1), 45–58.
Said, J., Omar, N., & Yusuf, S. N. S. (2023). Fraud risk in the era of digital transformation: Challenges and opportunities. Journal of Financial Crime, 30(2), 389–406.
Sari, D., & Nugroho, R. (2022). Analisis Fraud Hexagon dalam mendeteksi financial statement fraud. Jurnal Akuntansi Indonesia, 11(2), 115–130.
Tessa, C., & Harto, P. (2016). Fraudulent financial reporting: Pengujian teori Fraud Pentagon pada perusahaan publik di Indonesia. Diponegoro Journal of Accounting, 5(2), 1–15.
Vousinas, G. L. (2019). Advancing theory of fraud: The S.C.O.R.E. model. Journal of Financial Crime, 26(1), 372–381. https://doi.org/10.1108/JFC-12-2017-0128
Wells, J. T. (2017). Corporate Fraud Handbook: Prevention and Detection (5th ed.). Wiley.
Wolfe, D. T., & Hermanson, D. R. (2004). The fraud diamond: Considering the four elements of fraud. The CPA Journal, 74(12), 38–42.
Zweers, B., Dey, D., & Bhaumik, D. (2025). The AI-Fraud Diamond: A novel lens for auditing algorithmic deception. arXiv. https://arxiv.org/abs/2508.13984
Published
2026-07-01
How to Cite
Setiawan, B. D., Maria Yovita R. Pandin, & Amiartuti Kusmaningtyas. (2026). Theoretical Synthesis of Fraud Models (Fraud Triangle, Diamond, Pentagon, and Hexagon) in Developing a Predictive Framework for Organizational Fraud Prevention in the Digital Era. International Journal of Economics, Business and Innovation Research, 5(04), 2833-2847. https://doi.org/10.63922/ijebir.v5i04.4826
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