TED-Ed: How people rationalize fraud - Kelly Richmond Pope

Fraud is a widespread issue, costing organizations trillions annually. The fraud triangle, developed by Donald Cressey, identifies pressure, opportunity, and rationalization as key factors. Common frauds include time sheet and tax fraud. High-profile cases like Parmalat and Rita Crundwell highlight the severe impacts of fraud, affecting jobs and public funds. Fraud is not victimless; it harms real people and society.

What are the three conditions of the fraud triangle that make fraud likely?

Can you explain how pressure can lead someone to commit fraud?

What role does rationalization play in the decision to commit fraud?

What can be learned from the case of Rita Crundwell and her embezzlement?

Discuss the impact of fraud on individuals and organizations.