- This is fraud committed by employees or someone within your company. It usually depends on three elements:
Pressure or motive – a person can be driven by financial difficulties, addictions, trying to maintain a certain living standard or organised crime involvement.
Rationale – employees convince themselves what they’re doing is justified. For example, thinking they aren’t paid enough or that the company can afford it.
Opportunity – an employee sees a chance and takes it. The opportunity often occurs due to lack of internal controls, access to financial systems where it’s not needed, or abuse of authority.
- Insider fraud will often start with small amounts. Once carried out without detection, the amounts are likely to increase.