White-collar crime takes many forms. People who commit fraud against their employers are not career criminals. The vast majority are trusted employees who have no criminal history and who do not consider themselves lawbreakers. So the question is, what factors cause these otherwise normal, law abiding people to commit fraud?
The risk of internal misdeeds occuring in an organization is contingent upon a combination of factors: pressure, rationalization, and opportunity.
Pressure can be imposed due to:
Rationalization occurs when the individual develops a justification for their fraudulent activities. The rationalization varies by case and individual. Some examples include:
Opportunity is generally provided through weaknesses in internal controls. Some examples include inadequate or no:
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