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The Fraud Triangle revisited
Journal
Security Journal
ISSN
0955-1662
ISSN-Digital
1743-4645
Type
journal article
Date Issued
2016-04-01
Author(s)
Levi, Michael
Abstract
This article revisits the Fraud Triangle, an explanatory framework for financial fraud, originally developed by the American criminologist Donald Cressey from his interviews with embezzlers. First of all, we describe several developmental cornerstones of the Fraud Triangle. Its recent theoretical and practical application is reconsidered. In accordance with the three elements - motivation, opportunity, rationalization - and on the basis of our empirical study of 13 company fraudsters in Austria and Switzerland, we illustrate some within-company measures, which may contribute to a low fraud risk corporate culture. Although opportunity is necessary but not a sufficient condition for ‘upperworld' criminal offences, our respondents regard the perceived pressures they experienced as salient. Rather than rationalizations, there is a ‘fraud-inhibiting inner voice' before the crime, which normally deters an individual from fraudulent behaviour. This inner voice becomes quieter over time until the fraud occurs; at least in their cases. Our interviewees argue that all Fraud Triangle elements - including the inner voice - are highly influenced by the corporate culture in their companies.
Language
English
Keywords
Fraud Triangle
Fraud Diamond
white-collar crime motivation
fraudulent opportunity
pressure
rationalisation
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Palgrave Macmillan
Publisher place
Hampshire
Volume
29
Number
2
Start page
107
End page
121
Official URL
Subject(s)
Division(s)
Eprints ID
219251