With all the external challenges presented in today’s economy, it can certainly be disheartening to know that one of the greatest threats to your business could be internal. Fraud can silently attack even the strongest, most profitable of businesses if left to grow undetected. But take heart, as there is much you can do to minimize the conditions in which fraud thrives and advert disaster before it takes root. In this multi-part series, we’ll examine those conditions and what you can do to minimize, if not eliminate, them from your business environment.
Recognizing the Fraud Triangle
Over the years, we have found certain elements or ‘conditions’ to be present in most fraud cases. Most times, there are three conditions present, what we’ve come to refer to as the “fraud triangle.” These conditions are:
When these three conditions coincide, the risk of fraud is elevated. Recognizing, and subsequently minimizing or eliminating, these conditions is your best protection against fraud loss.
We will cover these conditions in greater detail in subsequent posts as well as provide tips for minimizing the likelihood of fraud in your organization.