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Why Employees Steal - The Fraud Triangle:
In criminal law, theft (also known as stealing or filching) is the illegal taking of another person's property without that person's freely-given consent.
As a term, it is used as shorthand for all major crimes against property, encompassing offences such as burglary, embezzlement, larceny, looting, robbery, mugging, trespassing, shoplifting, intrusion, fraud (theft by deception) and sometimes criminal conversion.
The Fraud Triangle describes three factors that are present in every situation of fraud/stealing. Breaking the Fraud Triangle is the key to fraud deterrence.
THE THREE FACTORS ARE:
- Motive (or pressure) - the need for committing fraud (need for money, etc.).
- Rationalization - the mindset of the fraudster that justifies them to commit fraud.
- Opportunity - the situation that enables fraud to occur (often when internal controls are weak or nonexistent).