the fraud triangle

The Fraud Triangle is a framework used to explain the three key elements that are typically present when fraud occurs. It was developed by criminologist Donald Cressey, who studied embezzlers and concluded that three factors must be in place for someone to commit occupational (white collar) fraud:

1. Motivation (Pressure)

2. Opportunity

3. Rationalization

When all three sides exist, the conditions are ripe for fraud to occur. Understanding and addressing each element is critical for effective fraud prevention and detection.

The Fraud Triangle is a framework used to explain the three key elements that are typically present when fraud occurs. It was developed by criminologist Donald Cressey, who studied embezzlers and concluded that three factors must be in place for someone to commit occupational (white collar) fraud:

1. Motivation (Pressure)

2. Opportunity

3. Rationalization

When all three sides exist, the conditions are ripe for fraud to occur. Understanding and addressing each element is critical for effective fraud prevention and detection.