The global context of occupational fraud
Crime on business brief
20th of July 2023
No organization, regardless of its size or sector, is immune to this phenomenon, which can occur in a wide variety of circumstances and be caused by a variety of factors. At Prosegur Research, we understand occupational fraud as the intentional and deliberate act conducted by personnel within the company or third parties with access to the organization, for personal financial gain and/or cause other harm of various kinds.
When facing this challenge, companies must consider that there is no known or unique solution to this problem: there is no availability of information on its incidence, which hinders the difficulties in measuring the scale and the classification of the threats, due to the underreporting of these acts by companies.
The context analysis, a contextual intelligence, is necessary to complete the vision of occupational fraud, given that it is not a phenomenon that occurs exclusively as the decision of an employee apart from a much broader and much more dynamic context, such as global trends and internal business dynamics. Thus, all criminal phenomena develop in each temporal and spatial context, but it is always susceptible of being affected by a multitude of contextual political, social, economic or technological variables.
The explanation of occupational fraud cannot be separated from the analysis of the external and internal corporate context, in addition to the four main variables that motivate a person to commit this criminal act: opportunity, incentive or motivation, capacity and rationalization. Thus, from Prosegur Research we propose an occupational fraud model based on the external and internal variables that may have an impact on this phenomenon:
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