Guide to Preventing Workplace Fraud - Chubb Group of Insurance ...

overcome, the pressures or incentives to act honestly. Thus, pressures or
incentives can become the motivation to act fraudulently. Pressures and
incentives to commit fraud are often associated with:
■
Lifestyle issues (living beyond one’s means).
■
Personal debt (e.g., excessive credit card use, gambling losses, use of
drugs or alcohol).
■
Business results (e.g., poor operating results, desire to avoid business
failure, meet requirements of lenders).
If a company can recognize when and where excessive pressure/incentives
may be present, it can use that information in fraud prevention and
detection efforts and take action to mitigate business-related
pressures/incentives in order to reduce fraud risk.
An effective fraud prevention program can increase pressures and incentives to
act honestly by emphasizing a “perception of detection,” underscored by the
company’s demonstrated, consistent commitment to taking appropriate and
certain action once fraud is discovered.
“Rationalization” refers to the need for people to somehow justify their
fraudulent actions in their own minds. A person involved in a fraud
attempts to psychologically accept his/her own actions and emotionally
“shift the blame” to anyone or anything other than him/herself.
Common rationalizations include:
■
Entitlement: “They don’t pay me what I’m worth. I have this money
coming to me.”
■
Anger or revenge: “The company has treated me poorly; now they’re
going to pay.”
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