Barry Minkow of ZZZZ Best fraud notoriety observed that, “Fraud is the skin of truth stuffed with a lie.”2In the past, we have focused only on the overt economic consequences of fraud. It is clear now that the covert “psychology of fraud” is an even more important dimension we need in order to truly understand fraud. Since 1996, the Association of Certified Fraud Examiners (ACFE) has released its biennial global survey of fraud, Report to the Nations (RTTN). Because fraud is so expensive when perpetrated by senior executives, how can we understand fraud in the C suite better? Employees suffer when the business underperforms in accidental fraud, and in predatory fraud, the crime requires the cooperation of the victim.

Source: Los Angeles Times January 21, 2023 02:34 UTC