In 1973 criminologist Donald Cressey theorized that financial fraud occurs when one or more of three elements are in place — opportunity, rationalization, and pressure. Cressey called his theory the fraud triangle.
Financial experts anticipate that the current economic downturn precipitated by the COVID-19 pandemic may last well over a year. Historically, instances of financial fraud increase during periods of economic downturn.
As employers impose furloughs, eliminate positions, reduce pay, make fast purchasing decisions, and adjust supply chains, some workers