Better Compliance Through Fraud Psychology

What is it about it about human nature that can cause non-compliance? How does a structured compliance program help combat our weaknesses?

The answers to these questions lie in psychological theories about fraud. By learning the human desires, intentions, and actions that result in fraud, you can develop a better compliance program designed to prevent, detect, and correct non-compliance. An example would be the three elements of the Fraud Triangle theory, developed by American criminologist Donald Cressey. The theory explains the factors that lead to fraud and other unethical behavior.

The Three Elements of the Fraud Triangle Theory: A Framework For Spotting High-Risk Fraud Situations

1. Pressure: Financial or emotional force pushing an individual towards fraud.
2. Rationalization: Personal justifications of dishonest actions.
3. Opportunity: The ability to execute a plan without the risk of being busted.

Tune into my free upcoming webinar, Unlocking the Fraudulent Mind, to dive deep into the human psyche and uncover where compliance and noncompliance reside.

In this webinar, I’ll focus on some of the human elements that contribute to non-compliant acts and discuss the three elements of the fraud triangle theory, the newer disposition-based fraud model, and human traits that tend to avoid fraud.