OK - let's start breaking down the fraud triangle. As we examined last time, the first element in the triangle is:
"Rationalization is one part of the fraud triangle, an essential tool in understanding fraud. We will discuss this next time. But, for now: the factors, which comprise the three points of the so-called fraud triangle, are:
- A perceived pressure facing the person"
"A perceived pressure facing the person" relates to the pressure that causes the fraudster to commit the fraud in the first place. Since when we are discussing fraud we are usually discussing stealing money, obviously the pressure is usually financial. The fraudster believes that he is under some kind of financial pressure and therefore needs money.
However, as many fraud investigators have discovered, often these perceived financial pressures are not the critical financial pressures of which a normal person thinks. We are usually not talking about the fraudster's need for basic necessities (food, a place to live, clothes, etc.), but rather the fraudster usually feels he "needs" luxury goods. Many fraudsters fit the pattern of needing goods for the high life (expensive cars and jewelery, high value homes, exotic vacations, etc.), and this is the "pressure" such people often find themselves in.
NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR
IS IT INTENDED TO BE LEGAL ADVICE. IF
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tausk
