The Fraud Triangle lives on
Over the years there have been many comprehensive frameworks that relate to fraud such Differential Association theory and the General Strain theory. Despite the rapidly advancing culture of technology, Cressey’s Fraud Triangle continues to be a pivotal model used in many industries (Allbrecht, 2014). The model explains the three components that lead to fraud, bribery or corruption as pressure, opportunity and rationalisation .
An example of these components was seen at my Dad’s old workplace. A few members were feeling mistreated by management and felt they were greatly underpaid for all their hard work and service. They decided to begin stealing money from the cash registers over a period of time and were later caught and dealt with accordingly.
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The workers were able to rationalise as they thought they deserved to be paid more for all their hard work. They had the pressure of financial difficulties and the resentment towards management and lastly had the opportunity, most likely due to a downfall within internal and risk controls. The components of the fraud triangle are still able to be associated as the underlying factors that lead to groups forming to commit fraud and the components that can lead to someone committing cyber crime. Groups forming to commit fraud, much alike individuals will go through the same stages of the fraud triangle.
My advice to an organisation trying to understand why fraud is increasing in their workplace is to understand the basics of the fraud triangle and distinguish OPPORTUNITY as the component to which they have the most control of (Coenen, 2016). Implementing ample internal controls will minimize this opportunity for fraud to occur.
Differential Association Theory:
https://www.d.umn.edu/~bmork/2306/Theories/BAMdiffassn.htm
REFERENCES
An example of these components was seen at my Dad’s old workplace. A few members were feeling mistreated by management and felt they were greatly underpaid for all their hard work and service. They decided to begin stealing money from the cash registers over a period of time and were later caught and dealt with accordingly.
The workers were able to rationalise as they thought they deserved to be paid more for all their hard work. They had the pressure of financial difficulties and the resentment towards management and lastly had the opportunity, most likely due to a downfall within internal and risk controls. The components of the fraud triangle are still able to be associated as the underlying factors that lead to groups forming to commit fraud and the components that can lead to someone committing cyber crime. Groups forming to commit fraud, much alike individuals will go through the same stages of the fraud triangle.
My advice to an organisation trying to understand why fraud is increasing in their workplace is to understand the basics of the fraud triangle and distinguish OPPORTUNITY as the component to which they have the most control of (Coenen, 2016). Implementing ample internal controls will minimize this opportunity for fraud to occur.
Differential Association Theory:
https://www.d.umn.edu/~bmork/2306/Theories/BAMdiffassn.htm
Allbrecht, S.
(2014, July/August). Iconic Fraud Triangle endures. Retrieved from
Fraud Magazine: http://www.fraud-magazine.com/article.aspx?id=4294983342
Coenen, T.
(2016). The Fraud Triangle and What you can do about it. Retrieved
from All Business:
https://www.allbusiness.com/the-fraud-triangle-and-what-you-can-do-about-it-4968017-1.html
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