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Abstract

This study examines the relevance of four behavioural theories such as Theory of Reasoned Action (TRA), Theory of Planned Behaviour (TPB), Fraud Diamond Theory (FDT) and Triangle of Fraud Action (TFAT) in the niche area of fraud prevention, detection and response. As noted by the American Institute of Certified Public Accountants (AICPA) Core Wheel (2008), fraud prevention, detection and response constitute one of the functional areas of forensic accounting that require serious attention and intervention from the government, the society, public administration, anti-fraud organisations and other numerous stakeholders. The current study focuses on the 2017 cyber-attack, which is an offshoot of the 2014 Sony Hack attributed and linked to Lazarus Group. The Ransom cyber-attack infected over 300,000 computers in more than 150 countries and dubbed WannaCry while the fraudsters resort to ransom demand for money in order to restore the computers and infrastructure to perfect normality. Thus, motivates the authors to explore the relevance of behavioural theories in preventing, detecting and responding to fraud. Similarly, the study integrates the triangle of fraud action theory (TFAT) and the extended theory of planned behaviour (TPB) to demonstrate a theory model for detecting fraud and obtaining prosecutorial evidence and the importance of attitude factors to red flags or symptoms of fraud that is central to this scandal of cyber-attack and the demand for ransoms.

Keywords: Cyber-attack, forensic accounting, behavioural theories, fraud prevention, fraud detection, fraud response

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