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The Fraud Triangle

What is the Fraud Triangle?

Fraud is any intentional deception engaged in for personal gain. Whether that personal gain is cash or even raw materials off the worksite, it is stealing. Donald Cressey, a criminologist, found that there are three factors that go into pushing someone to commit fraud. The three main components of the fraud triangle are perceived pressure, opportunity, and rationalization. If all three of these factors are present, there is a very high probability and risk that fraud will occur.