Fraud Unlimited

What makes someone cross the line into dishonesty? The answer is not always as easy as greed and it is rarely as simple as need; some do it just because they can, says Nathan Dony as he recalls a curious case of creative accounting.

Nathan Dony CFE, MIRM may be contacted on tel: +44 (0) 7860 336190; email: donyconsultants@btinternet.com

Is it possible to recognise or define the transition from honesty to dishonesty? Is it one that can be recognised or defined? My own experience is that as a general rule, whatever the trigger mechanism, once the Rubicon is crossed, it’s in for a penny in for a pound; fraudsters do not stop until either they are caught or the supply of money runs out. Some years ago I coined a phrase to describe this phenomenon: “There’s no such thing as a small fraud, only a large one that wasn’t allowed to grow.” If the fraudster feels a need to excuse his crime, he will often say, “I was only stealing what was rightfully mine”. He was underpaid, passed over for promotion or he might justify his behaviour with, “I’m cleverer than my boss [and deserve greater recognition]”or, again, “he’s rich, I’m not”.