Why people commit fraud?

Hi Steemians,

Before i dive into it, there are two kinds of fraudsters out there;

1. Accidental fraudster
2. Predator Fraudster

I will show/explain the difference(s) shortly.

Donald Cressey, an American criminologist came up with the hypothesis that for one to commit fraud, three components have to be present.

1. Pressure: Pressure is what causes a person to commit fraud. Pressure can include.

• Gambling debt
• Late Loan settlement
• Due Rent

1. Opportunity: Weaknesses in internal controls. An example would be in an organisation where one person does both requesting, authorizing, payment and receipt of items. That in itself is a flaw.

2. Rationale: Most fraudsters (accidental fraudsters) feel "bad" after committing the fraud. To get rid of that emotion, they usually come up with excuses like;

• I will pay it back tomorrow/next week
• I've been working for this company for a very long time with no increment.
• I'm taking what is rightfully mine.
• No one will see, its only $30.

THIS CONCEPT IS KNOWN AS THE FRAUD TRIANGLE

Now, Cresseys concept only explains the accidental fraudster.

Predator fraudsters on the other hand do not need any pressure or rationale to commit the fraud.. All they need is the opportunity to do so. Hence the name PREDATOR.

Predator fraudsters are constantly looking for opportunities to exploit.