Question

Which of the following is one of the three fraud triangle components where the fraudsters perceive the misdeed is unavoidable or justified?

1) Opportunity
2) Rationalization
3) Pressure
4) None of the above

Answer 1

The fraud triangle component related to a fraudster's justification of their actions as unavoidable or justified is Rationalization. It allows individuals to circumvent moral barriers by perceiving their actions as deserved or entitled. The other two components are Opportunity and Pressure.

Step-by-step explanation:

The component of the fraud triangle where fraudsters perceive their actions as unavoidable or justified is Rationalization. This element of the fraud triangle explains how individuals justify fraud to themselves, convincing themselves that they are entitled to the misappropriated assets or that the victim deserved the outcome. For example, an employee who has not received a raise might rationalize embezzling funds as compensation they are owed, aligning with the concept of 'Denial of the Victim' where the perpetrator believes that the victim deserved the actions taken against them. Rationalization helps fraudsters to overcome the ethical and moral qualms about their dishonest actions. Opportunity and Pressure are the other two components of the fraud triangle, with Opportunity providing the means to commit the fraud, and Pressure being the motivation or need to commit the act.