NCJ Number
190163
Date Published
March 2001
Length
6 pages
Annotation
This first of two papers on fraud focuses on motivation and other psychological aspects of fraud.
Abstract
The authors caution that psychological factors might be viewed as a marker for fraud, but not a comprehensive explanation for it. Psychological factors that may influence individuals to commit fraud are financial strain, which differs according to individual perceptions of financial need; an urge to gain power over people and situations; and rationalization that neutralizes inhibitions. In addition to psychological factors that are common to diverse types of fraud, some factors will be unique to specific types of fraud. This paper examines the psychological factors that tend to be involved in the following categories of fraud: fraud committed against an organization by a principal or senior official of that organization; fraud committed against an organization by a client or employee; fraud committed against one individual by another in the context of direct face-to-face interaction; and fraud committed against a number of individuals through print or electronic media or by other indirect means. What is apparent from the literature is that the risk of fraud is a product of both personality and environmental or situational variables. Individuals will vary in their propensity to commit fraud even when they are subject to similar environmental pressures. As individuals move from one environment to another, the probability of fraud behavior also changes. The key to understanding and eventually controlling fraud is to consider both the individual and the environment in which they operate. 20 references