Insider Fraud | NatWest

• Also known as employee or internal fraud, this is fraud committed by employees or someone within your company. 
• This type of fraud will often occur based on three elements. Pressure or motive, Rationale, Opportunity.

Pressure or motive can be driven by financial difficulties, addictions, trying to maintain a certain standard of living or organised crime involvement. These can motivate or pressure the employee to commit fraud.

Rationale, employees convince themselves what they are doing is justified. For example thinking they aren’t paid enough or that the company can afford it.

Opportunity, an employee sees an opportunity and takes it. The opportunity can often occur as a result of lack of internal controls and processes, access to financial systems provided when it’s not needed and an abuse of authority.

• Insider fraud will often start with small amounts and once carried out successfully without detection the amounts are likely to increase.