Abstract
This theoretical article addresses the fraud triangle and fraud diamond as explanations for fraudulent crimes. In the 1930s, Sutherland defined Sutherland fraud as a unique act, committed for personal gain, and called it “white-collar crime.” The most famous theory on this crime is Cressy’s model of the 1950s, 'the fraud triangle, with three vertexes influenced by the psychology of fraud: the first two include the opportunity to obtain personal incentives and low chances of being caught and perceived pressure, both motivating behavior and rationalization - the moral justification of fraud. When all three meet, fraud may occur. Opportunity, pressure, and justification derive from educational methods and beliefs developed over time and ingrained in the minds of fraud offenders. In 2004, researchers Wolfe and Hermanson realized that the 'fraud triangle' failed to address the important factors that motivated the fraud and introduced the 'diamond fraud,' adding the fourth vertex-capability, defining the ability and skills needed to perform a fraud offense, without which the act could not take place. These theories are universally significant in various countries and societies.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call