FRAUD

Fraud implicates deliberate acts and is perpetrated by individuals using dishonesty, trickery, and being cunning. Persons who commit fraud are purposeful in their intent due to intensity of desire. Most persons who usually commit fraud are in the following profession: accounting, operations, sales, executive/upper management, customer service or purchasing. These persons are mostly between the ages of 31 and 45. They have never been previously charged or convicted for a fraud-related offense. Fraud perpetrators frequently display warning signs that they are engaging in illicit activity. The most common behavioral red flags displayed are living beyond their means and experiencing financial difficulties. It is important to understand the psychological factors that might influence the behavior of fraud perpetrators. Some psychological factors include: opportunity, financial instability, job dissatisfaction.

Here are some excuses of white collar criminals:

• Everyone’s getting rich, so why shouldn’t I?

• I am only borrowing some money, this is temporary; I will put it back when I get some money

• I deserve these ‘‘perks’’ as reasonable compensation, and the company can certainly afford it

• I am not hurting anyone; in fact what I am doing is for a good cause