Fraud Triangle Model in WorldCom Fraud
Fraud triangle model is a roadmap designed to explain the reasoning of workers before
they commit workplace fraud. It entails three stages namely pressure, opportunity and the
rationalization. Pressure can be personal financial pressure such as the debt and workplace issues
such as the shortfall in revenue; for example, Betty Vinson Worldcom accountant had pressure to
swindle $11 billion from the telecommunication to meet the revenue pressure. Opportunity stage
is a point where a worker gets a means to defraud the organization; the fraudsters got a chance to
cover up expenses by creating reserve accounts. The ability to rationalize the crime is the final
stage in the fraud triangle; hence at this phase, a worker finds a way to justify the fraud in a form
that is acceptable to his or her internal moral compass. In most cases at the final stage fraudsters
see themselves as victims of circumstances; for example, Scott Sullivan who was the CFO of
Worldcom uttered that “I am sorry for the hurt that I caused by my cowardly behavior.”
Creating an Ethical Culture
Fraud in the organization is common especially in institutions that do not practice
professional ethics. Ethics and compliance programs are essential in organizations since workers
