The
social side of fraud. Very prevalent and
you are exposed to it. Ever hear of
group think? In High School you can call it a click. Groups of individuals who all have their own
perspective as to what reality is like or should be like. Their influence can be powerful and shape lives,
not for the best. Functional bonds can
be a manner in which social functions perpetrate. The perpetrator(s) act lie predators and seek
out other people to join be finding areas they can exploit that may solve peer
pressure problems. Organizational –function
serving is a fraud that exists to increase the profitability of the
company. From a academic perspective, I
have seen it with executive officers and board members shooting for stock
bonuses or golden parachutes and they are perpetrating in order to achieve their
goals to make themselves rich. Affective
bonds can cause terrible problems. An example
of it is the swindle that “this is for us”
and one party in the conversation is manipulated and expended in order
for the perpetrator to accomplish his or her goal. Awareness is the best prevention tool
according to Murphy and Free (2007) and brainstorming can be a prevention
method. Groups of individuals can become powerful and overcome internal
controls and perpetrate, so be cautious with whom is selected for brainstorming
in order to avoid the fraudsters from entrenching themselves once they find out
any brainstorming plans.
Murphey,
Pamela R., Free, Clinton. The Social
side of Fraud: Collusion and Culture. Fraud Magazine, 30(1), 64-68.
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