Non-Shareable Financial Problem
Definition
Cressey's original term for the pressure element. The problem need not be objectively severe; what matters is that the perpetrator perceives it as something they cannot discuss with others, typically because disclosure would cause embarrassment, legal consequences, or loss of status.
- Originator
- Donald Cressey, criminologist
- Fraud triangle element
- Pressure
- Key feature
- Perceived, not necessarily objective, severity
- Typical drivers
- Debt, gambling losses, addiction, lifestyle maintenance
Common questions
Why does Cressey emphasise perception over objective severity?+
Two people with identical debt levels may respond differently: one discusses it openly with family or an employer and seeks help, while the other treats it as something that must stay hidden. Cressey's model holds that it is the felt need for secrecy, not the dollar amount, that creates pressure toward fraud.
How is a non-shareable financial problem investigated after a fraud is uncovered?+
Forensic accountants and investigators look for lifestyle indicators inconsistent with known income, sudden debt, or personal circumstances the suspect kept hidden from colleagues and family, since these often surface only after the fraud is already under review.
Related terms
- Fraud Diamond
- Wolfe and Hermanson's 2004 extension of the fraud triangle that adds capability as a fourth condition. The model holds that pressure, opportunity,...
- Occupational Fraud
- The ACFE defines occupational fraud as the use of one's occupation for personal enrichment through the deliberate misuse or misapplication of the...
- Control Environment
- The first and foundational component of the COSO framework. It encompasses the board's oversight, management's philosophy and operating style, organisational structure, commitment...
- Fraud Triangle
- A model, developed by criminologist Donald Cressey, proposing that occupational fraud requires three converging conditions: pressure (financial need or incentive), opportunity (a...
- Management Override
- The circumvention of established internal controls by members of senior management. A key fraud risk in any organisation because those who set...
- Predication
- The reasonable basis that justifies opening a fraud examination. The ACFE holds that no examination should begin without adequate predication, meaning a...
- Rationalisation
- In the context of the fraud triangle, the mental justification a perpetrator uses to excuse fraudulent conduct. In interviewing, rationalisation is used...
- Rationalization
- The internal justification that allows a person to commit fraud while maintaining a self-image as an honest individual. Common forms include 'I...
Explained in these topics
- The Fraud Triangle: Pressure, Opportunity, and Rationalisation
- The Fraud Triangle and Cressey's ModelCressey's original phrase for what is now called pressure or incentive. The problem is non-shareable because the person believes they cannot disclose it withou...