A recent case of fraud at Apple was reported by ABC news. You can read about it in this short article: Former Apple employee, charged with fraud amounting to $13.47 million, has finances frozen, five properties seized
Links to an external site.

In this article it reports that:

"A federal criminal case unsealed on Friday alleges that he exploited his position to defraud the company via several schemes, including stealing parts and causing the company to pay for items and services it never received."

"Prosecutors said two owners of vendor companies that did business with Apple have admitted to conspiring with Mr Prasad to commit fraud and launder money."

Based on the information in these quotes, which of the following factors of the fraud risk triangle resulted in this fraud?

Question

A recent case of fraud at Apple was reported by ABC news. You can read about it in this short article: Former Apple employee, charged with fraud amounting to $13.47 million, has finances frozen, five properties seized
Links to an external site.

In this article it reports that:

"A federal criminal case unsealed on Friday alleges that he exploited his position to defraud the company via several schemes, including stealing parts and causing the company to pay for items and services it never received."

"Prosecutors said two owners of vendor companies that did business with Apple have admitted to conspiring with Mr Prasad to commit fraud and launder money."

Based on the information in these quotes, which of the following factors of the fraud risk triangle resulted in this fraud?

BlackTom AI · Accepted Answer

Let's break down the scenario and the fraud risk triangle concepts. The fraud triangle identifies three elements that must coincide for fraud to occur: pressure (or motivation), opportunity, and rationalization. The quotes provided describe actions that hinge on a favorable set of circumstances enabling wrongdoing within the organization, such as exploiting a position to defraud, stealing parts, and having vendors cooperate in a scheme.

Option: 'Opportunity to commit fraud.' This aligns with the core definition of opportunity in the fraud triangle: conditions that allow an individual to commit fraud with a lack of adequate controls or oversight, and the ability to disguise or conceal the misdeed. The article notes that the employee abused his position and that two vendor owners conspired with him, which directly indicates access, control of assets or processes, and insufficient deterrents or detection—classic indicators of opportunity.

Why this is a plausible answer relative to potential other factors: if we considered motivation (pressure) or rationalization, the excerpts do not focus on intrinsic pressures or justifications in detail. They emphasize how the fraud was executed (stealing parts, paying for non-received items) and that accomplices were involved, highlighting the structural chance to commit the act rather than the personal motive alone.

Why some other factors would be less supported by these quotes alone: motivation would require explicit reference to personal financial stress, performance targets, or external incentives driving the wrongdoing, which the quotes do not provide. Rationalization would involve statements about justifications or beliefs that the behavior was acceptable, which are not present in the excerpts.

In summary, the explicit information about exploiting a position, manipulating vendor relationships, and the existence of schemes points most directly to the presence of opportunity as a factor in the fraud risk triangle. The other elements rely on information not provided in the quotes, making opportunity the best-supported factor given the text.

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