Article: Fraud in the Workplace

Most employers never would expect that a trusted employee might commit fraud, yet every year numerous businesses are forced into bankruptcy due to fraud. Even when it isn’t that extreme, the  Association of Certified Fraud Examiners’ (ACFE) 2014 Global Fraud Study revealed that the typical organization loses a median of 5% of revenues each year due to fraud. Employers can utilize the “fraud triangle” to monitor and identify factors in the lives of key personnel that can lead to fraud. The fraud triangle is a model for explaining the factors that cause someone to commit occupational fraud. It consists of three components which, together, can lead to fraudulent behavior: pressure, perceived opportunity and rationalization.