Albrecht's Fraud Triangle

Albrecht's Fraud Triangle explains the three main factors that often lead to fraudulent behavior: Pressure, Opportunity, and Rationalization. Pressure refers to the financial or personal forces pushing someone to commit fraud. Opportunity is the perceived chance or loophole that allows the fraud to occur, often due to weak controls. Rationalization involves the individual's justification for their dishonest actions, such as believing they deserve more or that they’re just borrowing temporarily. When these three elements come together, the risk of fraud increases. Understanding this can help organizations implement measures to prevent dishonest behavior.