Final answer:
Individuals may not come forward about suspected fraud due to the fear of being labeled a whistleblower, the bystander effect, potential loss of friendships, and self-preservation as illustrated by the prisoner's dilemma. They also may try to deflect blame to avoid personal retaliation or professional jeopardy.
Step-by-step explanation:
Individuals in an organization who suspect fraud often hesitate to come forward due to a multitude of reasons. One significant factor is the fear of being branded a whistleblower. Whistleblowers are those who expose wrongdoing within an organization and may face various forms of retaliation such as social ostracism, professional setbacks, or even legal consequences.
Moreover, individuals may refrain from reporting due to a lack of personal connection with the victim or assuming that someone else will take up the responsibility (“bystander effect”). In some cases, there might be a strong disincentive to report a colleague or a friend, as this could lead to the loss of the friendship or discomfort within the work environment.