This is fraud committed by employees or someone within your company. It usually depends on three elements:
- Pressure or motive - a person can be driven by financial difficulties, addictions, trying to maintain a certain living standard or organised crime involvement.
- Rationale - employees convince themselves what they’re doing is justified. For example, thinking they aren’t paid enough or that the company can afford it.
- Opportunity - an employee sees a chance and takes it. The opportunity often occurs due to lack of internal controls, access to financial systems where it’s not needed, or abuse of authority.
Insider fraud will often start with small amounts. Once carried out without detection, the amounts are likely to increase.
