The “fraud triangle” is a three-legged model that explains the generally required conditions for a worker to commit occupational fraud: 1) incentive, 2) opportunity and 3) rationalization. Twenty years ago, fraud experts expanded the triangle to include another leg — capability — and the “fraud diamond” was born. Since then, the diamond framework has gained considerable support among forensic accountants. Understanding its principles can also help business owners prevent financial crimes in their companies. From triangle to diamond The triangle’s basic conditions are simple to unpack. Incentive refers to the motivations that fraud perpetrators experience. They can be personal (such as debt, addiction or a costly lifestyle) or professional (such as pressure to meet certain sales goals or revenue targets). Opportunity generally means that fraudsters believe they can get away...