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:


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. 


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.

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