Opportunity: Companies often unknowingly present opportunities for fraud. In particular, small businesses are more prone to these because it’s harder to separate duties when you have a small staff.
Pressure: Personal pressures can put people over the edge and cause irrational thinking. Someone you know may be under duress due to medical and/or financial issues, or any of a number of other personal situations that influence their judgment.
Rationalization: The perpetrator believes they can rationalize their behavior, i.e. they need the money more then the company, the company won’t ever notice, or other insidious thoughts. Indeed, fraud often starts as a “loan”, with the perpetrator fully intending to “pay it back”.
Fraudsters will go to extreme measures to cover their tracks. Many small business owners believe it could never happen to them, as their employees are like family.
However, it is critical that you separate your thoughts with regard to what happens at work versus what happens outside the four walls of your business. No business is 100% safe.