THEORIES FOR FRAUD MOTIVATION

Theories for Fraud Motivation

Theories for Fraud Motivation

Thesis Statement

A person always feels pressure or feels a need to commit fraud.

Introduction

Committing fraud might be a financial need such as high medical bills or debts or it can be a desire for material goods that makes a person want to commit fraud. (Akers, 2007) Sometimes, there may even be a need for good results at work or gambling and even drugs. So, it does not necessarily have to be a financial need or pressure that makes one commit fraud.

Discussion

Fraudsters always rationalize their behavior by convincing themselves that committing fraud is okay. For instance," I deserve it. I only want my share", "After this, I'm done", "They'll blow their money anyway" etc. (Coderre, 2007, pp. 47)Fraudsters will also rationalize their behavior by convincing themselves that they are just "borrowing" money and will pay it back one day. Some fraudsters may say that the company has enough money and it won't affect them in a big way.

Therefore, employers must take action to avoid fraud from happening at their companies. Learn about the fraud triangle and take control especially when there is an opportunity to commit fraud. Limit access to valuable information and documents and allow employees only to handle internal information when it is necessary for the job. (Coderre, 2007)

Motives as well as opportunity are essential mechanism for fraud to take place. For fraud to be unrelenting, the guilty employee typically must also diminish the behavior. Motivation ranges from undemanding greed in an appropriation case to a multifaceted series of issues in a fraud linking cooking the books.

Fraud can be for the assistance and gain of an individual, or for the profit and gain of an organizational entity or agenda. When an individual commits fraud, the reimbursement as well as gains may be straight receipt of money or property, or indirect recompense of promotions, bonuses, control and manipulate. When in an organization in fact an employee acting on behalf of the organization commits fraud, the benefits and gains to the organization are typically direct, in the figure of financial gain.

Fraud in the workplace is for all time a concern for employers. During an economic recession, the situations and forces that give use to fraud augment considerably. One way to defend yourself from fraud is to be conscious of the dissimilar ways someone can steal from you, what signs to look for, and practices you can put in place to defend yourself.

Approximately one-third of companies monitor their employees by taping telephone call or voicemail, interrupting computer files as well as electronic mail, and videotaping employees at their job. The mainly common form of observation involves monitoring the telephone numbers and extent of calls made by employees. A positive note to this characteristic of your work life is that mainly companies notify their employees of their monitoring policies. (Coderre, 2007)

More and more software companies are offering complicated tools that facilitate employers to carry on a close tab on the people that they ...