Pentagon Model
Definition
An extension of the fraud diamond by Jonathan Marks (2011) that adds arrogance as a fifth element, describing individuals so confident in their superiority that they do not rationalise the fraud at all. Associated with large financial-statement misstatement cases involving senior executives.
- Proposed by
- Jonathan Marks
- Year
- 2011
- Built on
- Fraud diamond model
- Fifth element added
- Arrogance
- Typical association
- Senior-executive financial statement fraud
Common questions
How does arrogance differ from rationalisation in fraud models?+
Rationalisation describes a perpetrator justifying the act to themselves. Arrogance describes someone who feels superior to internal controls and consequences and so skips justification entirely, believing they will not be caught or challenged.
Why was a fifth element considered necessary after the fraud diamond?+
Investigators studying large executive-level fraud cases observed offenders who showed little rationalising behaviour but strong entitlement and disregard for controls, a pattern the existing four-element models did not capture well.
Is the pentagon model used to predict fraud or only to explain it after the fact?+
It is mainly an explanatory and risk-assessment framework, helping auditors and investigators interpret behavioural red flags in senior management rather than a statistical predictive tool.
Related terms
- Arrogance
- In the Pentagon model, the belief that normal rules do not apply to oneself. Arrogance replaces or bypasses rationalisation: the perpetrator does...
- Behavioural Red Flag
- An observable action or pattern that suggests elevated fraud risk by signalling pressure, rationalisation, arrogance, or capability. Examples include living beyond apparent...
- Capability
- In the fraud diamond, the personal attributes that allow an individual to execute a fraud: seniority and authority, knowledge of controls and...
- 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,...
- MICE Model
- A motivational taxonomy derived from counterintelligence practice: Money (financial gain or need), Ideology (loyalty, grievance, or belief), Coercion (external pressure or blackmail),...