What is the primary motive behind rationalization in fraud cases?

The primary motive behind rationalization in fraud cases lies in the psychological process individuals undergo when they attempt to justify their unethical behavior. When someone commits fraud, they often need to reconcile their actions with their moral beliefs. This is where rationalization comes into play. By convincing themselves that their behavior is acceptable or justified, individuals create a mental framework that mitigates feelings of guilt or dishonor. They may interpret the act as necessary for their survival, argue that they are owed something, or believe that everyone else is doing it, thus normalizing their actions.

Understanding this process is critical for investigators as it highlights the mindset of a fraudster, allowing them to devise effective prevention and detection strategies. In contrast, ensuring compliance with company policies, seeking legal advice, or gaining approval from colleagues do not fundamentally address the internal justifications that lead someone to commit fraud. These actions may be taken after the fact or may not even occur in the mind of the individual engaged in fraud, as the primary concern is their internal justification rather than external validation or rules.