Certified Fraud Examiner Practice

In the context of the Fraud Triangle, "pressure" refers to the external or internal factors that compel an individual to commit fraud. This generally includes financial difficulties or a pressing need for money, which leads individuals to feel an overwhelming drive to engage in dishonest behavior to alleviate their problems. The need for financial security encapsulates various personal circumstances including debt, lifestyle expectations, or other economic pressures that may push someone toward committing fraud.

The other aspects of the Fraud Triangle—opportunity and rationalization—are important as well, but they serve different roles. For instance, opportunity relates to the ability to commit fraud due to lack of internal controls or oversight, while rationalization involves the individual's process of justifying their fraudulent actions to themselves. However, without the pressure that incentivizes the act in the first place, the likelihood of committing fraud decreases significantly.