Fraud is motivated by many reasons. Why should a acounting professional or a fraud investigator be concerned with the motivation? A criminal's motivations may be important for the following reasons -
1. pre-fraud - when hiring staff, it might be possible to sieve out those with the propensity to commit fraud;
2. fraud occurence - looking for red flags such as an employee's gambling habits, might help detect or prevent fraud
3. investigation - understanding fraud motivation might assist in questioning of the suspect or tracing the money flow
4. trial - the motivation may have some effect on the sentencing meted out by the court but this is not common.
The motivations for fraud include -
a) financial - this could either be pure greed, or desperation when a person encounters financial problems; (lawyer David Rasif was probably one of the few lawyer crooks who stole not because of financial pressure but because of sure greed)
b) revenge - a desire to punish the victim for some real or imagined wrong;
c) vindication - there is some evidence that SIA clerk Teo Cheng Kiat was partly motivated to show his employer that he was smarter than it was.
1. pre-fraud - when hiring staff, it might be possible to sieve out those with the propensity to commit fraud;
2. fraud occurence - looking for red flags such as an employee's gambling habits, might help detect or prevent fraud
3. investigation - understanding fraud motivation might assist in questioning of the suspect or tracing the money flow
4. trial - the motivation may have some effect on the sentencing meted out by the court but this is not common.
The motivations for fraud include -
a) financial - this could either be pure greed, or desperation when a person encounters financial problems; (lawyer David Rasif was probably one of the few lawyer crooks who stole not because of financial pressure but because of sure greed)
b) revenge - a desire to punish the victim for some real or imagined wrong;
c) vindication - there is some evidence that SIA clerk Teo Cheng Kiat was partly motivated to show his employer that he was smarter than it was.
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