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Reconceptualizing Fraud in the 21 Century: The Fraudosphere Model and Contemporary Accounting Debates

OPUDU Derek Okubokeme PhD

Abstract

This paper advances accounting theory by developing the Fraudosphere Model, a multidimensional framework that explains the evolving nature of fraud within modern financial, institutional, and technological environments. It responds to ongoing debates in accounting research regarding the theoretical adequacy of classical fraud models (the Fraud Triangle, Fraud Diamond, and Fraud Pentagon) which insufficiently capture systemic, digital, and cultural complexities shaping contemporary fraud. Using a conceptual synthesis approach, the study integrates literature from accounting, criminology, behavioral ethics, psychology, and institutional theory to construct a twelve-dimensional model emphasizing theoretical integration over empirical testing. The Fraudosphere Model identifies twelve interrelated dimensions: pressure, opportunity, rationalization, capability, arrogance, personal ethics, self-actualization, psychological triggers, cultural normalization, technological vulnerability, regulatory weakness, and perceived risk of consequences. Unlike static geometric models, the framework conceptualizes fraud as an adaptive and dynamic phenomenon operating within interdependent psychological, institutional, and technological systems. The model provides a comprehensive foundation for extending fraud risk assessment in auditing, forensic accounting, and governance. It encourages scholars and practitioners to move beyond individual-centric analyses toward systemic and contextual explanations of fraudulent behavior. Overall, the Fraudosphere Model contributes to contemporary accounting debates on the renewal of fraud theory in the digital age and establishes a basis for future empirical testing and policy application.

Keywords

Fraud Theory; Accounting Ethics; Fraudosphere Model; Financial Crime; Corporate Governance; Digital Era Accounting

References

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