What are the Factors Causing Fraud?

[Suba]

Fraud can occur anywhere, whether in social organizations, companies or government institutions, Fraud can be done individually or in groups (collusion). There are several factors that can cause fraud such as:
1. Weak internal control, ineffective systems and procedures.
2. Special positions, some positions in the company where fraud often occurs are the finance department, warehouse, purchasing department, sales, etc.
3. Light punishment, light punishment by the company owner often makes other workers not afraid to commit fraud.

 

[King Belieal]

It also goes down to the calibre of staff that you have in your organization. Doing due diligence on the character of staff can help to prevent fraud.

 

[Augusta]

weak institutional frameworks and a lack of law enforcement can create an environment where fraud is more likely to thrive.

 

[eLdavis]

There are various factors causing people to go into fraud, but at the same time one of the major factors is greed. The greed for money, or should i say to make good money makes people go into fraud.

 

[Suba]

Here a large number of people and companies are getting away with fraud, because of the inefficiency of the government systems, and because no action is taken against high status people.

Inefficiencies occur as a result of systems and procedures that are not followed or overlapping work/positions. If done individually, it will be easy to disclose, but if done in groups and neatly, it will be more difficult to disclose.

 

[Augusta]

Opportunity brings fraud , the existence of a system or situation that allows for fraud to occur with minimal risk of detection.