Why do good people do bad things? And how we can protect ourselves!
The recent arrest of the founder of PFG for stealing in excess of $200 million in customer funds over the past twenty years is a dramatic illustration of something we have all heard of. Often it is the trusted employee who commits the biggest thefts for the longest time. If we can understand why, and then take steps to prevent it, we will be doing a lot to further safety and soundness.
A report on NPR argues that we are often surprised by the perpetrators of fraud because we don’t understand the motives behind the crime. According to the report, a growing body of psychological research suggests that most people who commit fraud don’t realize the profoundly unethical decision they are making when they decide to break the…
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