The Double F

The Double F

Fraud and fiduciary.  It takes a terrible toll on people and is like being blindsided.  When breaching a fiduciary agreement you breach a bond of trust.  Social fraud can be a excellent way to subordinate groups of individuals to cooperate with your fiduciary breach via group think, making the problem a community dilemma.  With social fraud, as stated in my last blog, it leads to a circumvention of internal controls.  This is subordination in it’s principle form and has it’s impact in the fiduciary breach by rotting everything to the core.  Back to the community in a dilemma.  Fiduciary problems in the community can upset delicate balances and become virile arguments that destroy lives and ruin reputations.  Rely on your communities support network to help guide you through any fallout and be on guard and remain vigilant for the signs that lead to corruption in the future!!

Let's Be Social!!

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.   

Coming Soon!!

I have decided to bring my fraud awareness blog to Blogger.  New content to come.