What added element transformed the Fraud Triangle into the Fraud Diamond?

The concept of the Fraud Diamond builds upon the original Fraud Triangle by adding a critical element that reflects a more comprehensive understanding of what drives individuals to commit fraud. The addition of personal greed encapsulates the internal desires and motivations that can influence a person's decision to engage in fraudulent activities. Personal greed acknowledges that beyond just the opportunity and pressure (or motivation), there are individual character traits and psychological factors that can drive someone to act in self-interest, often at the expense of others.

The Fraud Triangle highlights three components: opportunity, motivation (or pressure), and rationalization, which explain why a person might commit fraud. By introducing personal greed, the Fraud Diamond expands the framework, emphasizing the importance of understanding the individual motivations that can lead to unethical behavior. This element reflects a deeper insight into the psychological aspects and personal values that may dictate a person's actions in a financial context.

Thus, personal greed serves as a crucial layer in understanding the complexities involved in financial crimes, helping investigators to identify and address the nuanced reasons behind fraudulent behaviors.