The Fraud Triangle

A Model to Explain Employee Fraud

Listen to Mark Lowers, Founder and CEO of Lowers & Associates, talk about the Fraud Triangle, a model to explain three common factors present in cases of employee fraud:

Opportunity

The hard fact is that opportunity can sway even otherwise honest individuals in cases of fraud. Weak internal controls, poor security, low likelihood of detection, and lack of policy enforcement can create opportunities for a fraudster. 

Incentive / Motivation

Need and greed are common incentives for committing fraud. When coupled with opportunity, the temptation can be all too great for some. 

Rationalization

In committing fraud, employees will seek to justify their actions by using rationalizations such as, "I didn't get that raise I was promised," or "I work harder than anyone else," or "They have so much money they'll never notice." Rationalizations are difficult to combat because each individual is likely to have unique reasons or justifications for their fraudulent actions.

 

Combating Employee Fraud:

The best way to prevent employee fraud is to adopt practices that will decrease opportunity and incentive. 

For more than 25 years, the experts at Lowers & Associates have helped clients proactively address employee fraud with enterprise risk mitigation strategies and loss prevention services that protect people, brands, and profits.

Let's discuss your situation. Complete the form on this page or call (540) 338-7151 to request a consultation.


Assessments | Audits | Investigations | Compliance

Service Areas

Crime Awareness Training Webinars
Risk Survey/Assessment Services
Corporate Due Diligence & Vendor Screening
Compliance Programs
Security & Safety Services

Background Screening
Business Continuity & Disaster Recovery Planning Services
SSAE 16 (SAS-70) Support & Guidance
IT/Information Security and Cyber Risk Services
Breach Prevention & Response
Industry-Specific Solutions