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
Common causes of juveniles committing crimes include family issues, drug use, peer pressure, problems in school and a lack of adult supervision. Each juvenile has his own reason for committing a crime, but these factors each increase the probability of it happening.Full Answer >
Prosecution, fines or imprisonment may be the penalty for committing fraud. The seriousness of the penalties depend on the type of fraud, the laws of the state where it was committed and the facts of the case as presented in a court of law.Full Answer >
Penalties for committing fraud vary depending on the type of fraud. For tax fraud, possible prison time ranges from less than a year to as many as five years, according to the U.S. Internal Revenue Service. Monetary fines range from less than $100,000 for individuals to as much as $500,000 for corporations.Full Answer >
SNAP fraud occurs when individuals lie to obtain benefits or receive more than they are entitled to, exchange benefits for cash and when disqualified retailers lie to re-enter the program. In 2012, the Office of the Inspector General devoted more than 50 percent of investigative resources to prevent such fraud.Full Answer >