Monday, July 26, 2010

THE MORTGAGE FRAUD TRIANGLE: Pressure, Opportunity and Rationalization - Part 4


The opportunity to commit and conceal fraud exists when employees are given access to assets and information. These individuals are given access to firm records and valuables that are ordinary aspects of their jobs. Unfortunately, it is this access that permits them the ability to commit fraud. To these “unprofessionals,” committing fraud is available and easy.

These individuals feel that they are unlikely to be caught. Therefore, they think of all the opportunities that will arise for them to handle money at their business. Many lenders easily provide the many ramps needed for brokers and others to commit fraud due to little monitoring and sloppy business practices. These individuals are also provided the knowledge needed to commit fraud through seminars and various educational programs. This readily gives them technical skills that can be utilized to commit fraud.

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