An introduction to behavioral insights and nudging fraud out of your organizations

This a brief introduction to behavioral insights and nudging and explores ways in which they could be applied as a fraud prevention tool in your organization.  

Behavioural insights, a term developed by the UK’s Behavioural Insights Team, resulted from applying behavioural science research to understand how people behave and make decisions. In 2008, Richard Thaler and Cass Sunstein published the book Nudge. This book, which provides strategies to influence people’s decision-making without significantly changing incentives or limiting options. Nudges, therefore, make use of behavioural insights, or the things we know about people’s behaviour to help them make better decisions and may even possibly prevent fraud.

The idea of using behavioral insights and nudging is fairly new in Canada but there are already several great examples of programs in place within British Columbia and the Government of Canada. As well, there are several case studies in which nudging has been effectively used to reduce fraud in the healthcare, insurance and retail industries. Using behavioral insights and nudging may be your next cost-effective fraud prevention tool. Can you think of ways that behavioral insights and Nudging can be used in your organization?

For more information about behavioral insights and nudging please contact me directly anytime or see the resource links provided within this article.

If you are interested in speaking at one of our Chapter events or submitting an article for our monthly newsletter or weekly fraud insights post, please contact me directly anytime at [email protected]. This is a great professional development opportunity. Lastly, I encourage everyone to make continuous learning a part of their lives and wish you all the very best during the coming year.

Most sincerely,

Steve Wilson