As we saw in the previous article, with the Fraud Triangle framework we can understand why an individual decides to commit fraud. Now we will talk about the vertex of "Motivation," that is to say, the motives that make the individual commit fraud.
Sometimes this motivation can also be referred to as "pressure," referring to the feeling that something is pushing the insured to behave fraudulently. Some of these reasons can be:
- Personal Incentive:
The most obvious reason a person makes a fraudulent claim is their circumstances. An example of this could be a feeling that they should be earning more, so they take fraudulent action with their insurance to profit from it.
- Enjoyment of the Reward:
Some policyholders who commit fraud simply enjoy the process of getting a little more than they should. They may also like the idea of "cheating the system" and feel compelled to repeat their behavior in future claims.
- Claims for low amounts that "do not arouse" the insurer's suspicions:
We have already mentioned that some fraudsters do not consider what they do a crime. This is an incentive explored by psychology professor and economist Dan Ariely in his book ‘The (Honest) Truth About Dishonesty.’
After investigating 30,000 people, Ariely stated that “most people cheat to the extent that it allows them to retain an image of themselves as reasonably honest individuals.”
Although your fraudulent claim may be small (or at least not large enough to impact your self-image), each of these small claims adds up to a large amount, resulting in significant losses for insurers.
Now let's see what the last vertex of the fraud triangle is: rationalization.