Question

Given that many frauds ultimately are discovered, and that there exists very significant negative consequences to the fraudsters themselves, in addition to their victims, why do you think that both theft and financial reporting fraud continue to be prevalent in our society?

Answer 1

Though there are a number of negative consequences to the fraudsters if they do a theft or financial reporting fraud but it continues to be prevalent in our society.because those involved are able to rationalize committing a fraudulent act. Some individuals possess an attitude, character, or set of ethical values that allow them to knowingly and intentionally commit a dishonest act. However, even otherwise honest individuals can commit fraud in an environment that imposes sufficient pressure on them. The greater the incentive or pressure, the more likely an individual will be able to rationalize the acceptability of committing fraud.