ABSTRACT
This chapter addresses two fundamental questions: What do we mean by fraud and corruption? and how can regular people working in organizations also spot fraud and corruption and why is it worth them doing so? Humans are likely to act unethically (or fraudulently) if all the three factors are present: opportunity, motivation, and rationalization. When fraud or corruption is discovered, it is usually found by whistleblowers, by the media receiving a ‘tip-off’ from someone inside an organization, or just by accident. In the clear majority of cases it is because someone smart in an organization was awake and observant and took it upon themselves to speak up. An organization’s ability to identify fraud and corruption early, in advance of them being discovered by whistleblowers, the media or by accident, is both crucial for any organization and also provides them with a competitive advantage.
