Recognizing rationalization

Criminologist Dr. Donald Cressey strongly influenced Dr. Joseph Wells, CFE, CPA, and others who formed the ACFE. Cressey's principles culminated in the formation of the Fraud Triangle, which fraud fighters have used for decades to understand and work cases. Students and aspiring fraud examiners need to understand that the Fraud Triangle isn't just some sociological theory from a textbook but an important application in the field.

The case of "Judy" is an important study in the application of the Fraud Triangle and several other fraud examination tenets. We know the Fraud Triangle by its three sides: pressure, opportunity and rationalization. As you read the case study, think about each category and how it might apply in cases you're working now. (This case is real, but I've changed some of the details, including names.)

'Only the Lonely'

Judy had been a bank teller for a regional financial institution for 14 years — since her senior year in high school. Over time, she became a respected authority in her area, and bank managers and employees saw her as a good person. Her value increased when the bank promoted her to a supervisory position when she was 30.