Commentary: Be prepared: Think like a thief.

• Date: 05 February 2007
• Author: Coenen, Tracy

Byline: Tracy Coenen

Fraud is committed by real people. They have real families and real jobs. They often are just like you and me. But what makes thieves different from a lot of us is their ability to lie and steal. Most of us would never seriously consider taking something that does not belong to us, especially not significant sums of money. But thieves are different. Those who commit fraud have taken that which is not theirs. They have cheated others. They have covered up their lies. What makes it okay in their minds to commit fraud? What is it about their moral code that allows them to steal? How do they justify their actions? The answer is found in the fraud triangle, an old concept in criminology that still has wide acceptance in the fraud examination field. In order for fraud to occur, three things must be present, and each represents one side of the triangle. The three pieces of every fraud puzzle are opportunity, motivation, and rationalization. These are key to explaining why a fraud occurs. Opportunity First, there must be an opportunity. That includes an opportunity to steal something of value, as well as to conceal the theft. An employee generally won't endeavor to take a company's assets if several people are observing. Rather, the theft will occur away from watching eyes, when there is a chance to sneak off...