Why do people commit fraud?
Fraud does not just happen by accident. One of the most widely used ways to understand this is the Fraud Triangle, a concept developed by criminologist Donald Cressey.
Let's Talk Fraud
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Let's Talk Fraud
What is fraud?
Fraud is the intentional use of deception to obtain a personal or financial benefit. It involves three core elements: a clear intent to mislead, the use of deceptive methods or false representations and the objective of gaining something of value at the expense of another. Unlike error, fraud is a deliberate and calculated act, often relying on the abuse of trust to succeed.
Fraud is growing at an alarming rate. According to the Nasdaq Verafin 2024 Global Financial Crime Report, globally fraud scams and bank fraud scam schemes totalled $485.6 billion. In Europe alone, fraud-related losses were estimated at $103.6 billion in 2023. Malta is no stranger to fraud either. According to the Malta Police, victims in Malta lost €12.5m to on-line fraud compared to the €8.5m in the previous year.
Who commits fraud?
Organisational fraud is rarely the work of career criminals or obvious wrongdoers. Instead, it is often perpetrated by trusted, exemplary employees who have earned the organisation’s confidence over time.
Behavioural red flags of a fraudster
Fraud rarely occurs without warning, though its signs are often overlooked. Individuals committing organisational fraud frequently exhibit behavioural changes that serve as early indicators of potential misconduct. Recognising these red flags is crucial for early detection and prevention.
International Fraud Awareness Week
Forvis Mazars in Malta: Proud Sponsors of 2025 International Fraud Awareness Week
Want to know more?
Alan Craig Advisory Partner - Birkirkara
Rebekah Barthet Forensic Investigation Services Associate Director - Birkirkara
