Cressey’s Fraud Triangle

Cressey’s Fraud Triangle explains the three key factors that typically lead someone to commit fraud: 1) Pressure or Incentive—such as financial difficulty or personal problems motivating the act; 2) Opportunity—having access or weak internal controls that make committing fraud easier; and 3) Rationalization—reasons or justifications the individual uses to justify their actions, like believing they’re “just borrowing” or deserve more. Recognizing these factors helps organizations implement controls to prevent and detect fraud by reducing opportunities and addressing underlying pressures and rationalizations.