Ripe for the picking

Disrupting internal fraud
Using the fraud triangle to explain the factors that cause someone
to commit fraud, one sees a pattern. In most of these cases, red
flags such as the perpetrator living beyond his means, falling into
acute financial difficulties or having unusually close relationships
with customers and vendors were clearly discernible.
Ultimately, the risk of fraud can be reduced by taking steps to
disrupt any one or more of these three attributes: rationalization,
opportunity; or pressure. EY regularly supports companies
operating in the Oil & Gas sector in developing these
counter-fraud mechanisms.
Fraud model originally developed by Donald R Cressey 1
Culture
Internal
► ► “I need the money”
► ► “It is such a small amount
anyway”
► ► “No one will ever know”
Rationalization
Opportunity
►►
Loopholes in internal
systems and controls
Pressure
►►
Keeping up with the lifestyle of peers
►►
Debts/addiction
►►
Malice/revenge
1
Donald R. Cressey, Other People’s Money
(Montclair: Patterson Smith, 1973) p. 30.
Ripe for the picking A changing oil and gas landscape
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