What is a common outcome of employees rationalizing their fraud?

When employees rationalize their fraudulent actions, they often develop a justification for their behavior based on perceived grievances. This means that individuals may convince themselves their actions are acceptable due to feeling wronged or underappreciated in some way. Such justifications can stem from various factors, such as perceived unfair treatment by management, lack of recognition, or feelings of entitlement. This mindset enables the fraud to be categorized as “necessary” or “justified” in their eyes, allowing them to compartmentalize their behavior without feeling guilty.

In contrast, the other outcomes listed do not directly correlate with the act of rationalizing fraud. Increased oversight and audits typically arise as preventive measures after fraud is discovered, while a decrease in workplace morale may result from heightened scrutiny and ethical concerns, but it is a secondary effect rather than a direct result of rationalization. Enhanced employee training seminars are often response-driven efforts to mitigate fraud risk but do not relate directly to the internal rationalizations employees use to justify unethical behavior.