Revisiting the Fraud Triangle in Corporate Frauds: Towards a Polygon of Elements

The fraud triangle has long served as a fundamental model for understanding corporate fraud, emphasizing opportunity, pressure, and rationalization. Over time, this framework evolved with the fraud diamond, which introduced capability; the fraud pentagon, which added arrogance; and the fraud hexagon, which incorporated collusion and reshaped arrogance. Building on these developments, this study proposes a seventh dimension: the pleasure and thrill of risk-taking. This psychological factor highlights the gratification that some individuals derive from engaging in fraud as a high-stakes game. Through a qualitative analysis of five major corporate fraud cases—Société Générale, Enron, Wirecard, Parmalat, and Theranos—this study highlights the presence of this additional motivational factor. By introducing the fraud polygon, this research provides a more comprehensive framework for understanding corporate fraud’s multifaceted nature. This model has significant implications for both academic research and practical fraud prevention, offering insights into the interplay between systemic vulnerabilities and intrinsic motivations.

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Publication Details

Journal
Journal of risk and financial management
Published
2025-03-14
DOI
https://doi.org/10.3390/jrfm18030156
Citations
4
Primary Topic
Corruption and Economic Development
Type
article
Field-Weighted Citation Impact
16.81
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article

Revisiting the Fraud Triangle in Corporate Frauds: Towards a Polygon of Elements

Paolo Roffia, Michele Poffo
4 citations
Journal of risk and financial management
Corruption and Economic Development
16.81
article

Revisiting the Fraud Triangle in Corporate Frauds: Towards a Polygon of Elements

Paolo Roffia, Michele Poffo
article en
4 citations

Abstract

The fraud triangle has long served as a fundamental model for understanding corporate fraud, emphasizing opportunity, pressure, and rationalization. Over time, this framework evolved with the fraud diamond, which introduced capability; the fraud pentagon, which added arrogance; and the fraud hexagon, which incorporated collusion and reshaped arrogance. Building on these developments, this study proposes a seventh dimension: the pleasure and thrill of risk-taking. This psychological factor highlights the gratification that some individuals derive from engaging in fraud as a high-stakes game. Through a qualitative analysis of five major corporate fraud cases—Société Générale, Enron, Wirecard, Parmalat, and Theranos—this study highlights the presence of this additional motivational factor. By introducing the fraud polygon, this research provides a more comprehensive framework for understanding corporate fraud’s multifaceted nature. This model has significant implications for both academic research and practical fraud prevention, offering insights into the interplay between systemic vulnerabilities and intrinsic motivations.

Journal of risk and financial managementVol. 18(3)
University of Verona (IT)
Openalex Percentile: Top 1%
Corruption and Economic Development
16.81
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