People commit fraud for a variety of reasons, some of which include single-mindedness blinding them to ethical issues, feelings of disconnectedness or neglect from the company, little sense of individual responsibility, and escalation from smaller thefts. Some people also commit fraud after being bypassed for a promotion.Know More
A self-serving bias is why people commit fraud if they feel they were wrongly turned down for a promotion. They see themselves as better than their co-workers. The feelings stemming from the incident as well as reading too much into situations can lead to fraud.
A self-serving bias sometimes ties into a need for excessive consumption, and fraud results. People see others receive lavish bonuses or seemingly extreme perks while they do not. It seems unfair, and some become jealous. Fraud is a method to avenge the apparent unfairness.
The way a company treats its employees also plays a role in fraud. Strict companies that restrict freedom may create resentful employees who commit fraud. The same goes for companies who treat their employees like thieves from the start and without reason; this is called the Pygmalion effect.
Some people also commit fraud because someone on a higher level asked them to. Obedience to authority can be a difficult behavioral pattern for some employees to ignore.Learn more about Crime
Sentences for credit card fraud vary based on jurisdiction and the value of the fraudulent charges. Some states punish felony fraud with up to a $25,000 fine and 15 years in prison. Misdemeanor fraud is punished at up to a $1,500 fine and one year in jail.Full Answer >
The Federal Trade Commission Complaint Assistant and the Financial Fraud Enforcement Task Force provide fraud complaint information on their websites. The Financial Fraud Enforcement Task Force recommends reporting fraudulent activities to a local law enforcement office and offers additional channels for individuals who want to report a specific type.Full Answer >
Report fraudulent banking activities to one of several organizations depending on the nature of the crime. Contact the police for instances of local fraud and the FBI for banking fraud across state borders, suggests the Office of the Comptroller of the Currency.Full Answer >
For check fraud, the distinction between a misdemeanor and a felony varies based on several factors. Potential variables include the specific type of check fraud committed, the state in which fraud was committed and the amount of money involved, among others.Full Answer >