The Fraud Triangle Of Opportunity, Rationalization, And Pressure

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The fraud triangle of opportunity, rationalization, and pressure involves asset misappropriation, corruption, and financial fraud reports. These are the three occupational frauds that company chief executives and employees commit.
In today’s information world, monitoring and securing confidential data in companies has become a trending issue as most of the fraudsters are covert which makes them difficult to identify. Occupational fraud refers to stealing a company’s assets such as money laundering, employee violations of the code of conduct, and theft. Most of the fraud occurs through fraudster vested interests. Company executives or staff commit fraud based on the fraud triangle which is opportunity, rationalization, and pressure. Based on these three aspects fraudsters tend to commit these crimes both internally and externally of the company. According to the survey conducted by ACFE, it is said that small organizations are losing 5% of their total revenues each year. In that survey, the highest occurrence of fraud was committed with misappropriation of assets with around 85%. Financial statements fraud fell to 9%, and corruption is 37%. Even though financial statement fraud was low in the survey, its costs are huge with a loss of 1 million dollars ( Frauds occur not only on the inside of an organization but also from outside the company. In a recent study, organizations face high pressure to protect their assets from hackers like those that broke
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