factor

FRAUD TRIANGLE THEORY

• Developed by Donald R. Cressey in 1953.

• Describes the three key elements that lead to criminal behavior in fraud cases.

PRESSURE

Financial Pressure

• High cost of living.

• Debt problems.

• Lavish lifestyle.

• Gambling habits.

Work Pressure

• Lack of promotion opportunities.

• Salary perceived as inadequate for work performed.

• Low or unreasonable performance assessments.

OPPORTUNITY

• Weak internal controls.

• Presence of corruption opportunities within processes and systems.

• Lack of monitoring mechanisms.

• Absence of job separation protocols.

• Excessive discretion granted to individuals.

RATIONALISATION

• Justifications made by individuals for their corrupt actions:

  • "They want to give. Just take it. I didn’t even ask for it."

  • "The boss also takes bribes. Don’t tell me I can’t do the same."

  • "It is not even his money. He will 'claim' from the company."

  • "If I don't take it, someone else will."