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

Paolo Roffia () and Michele Poffo
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Paolo Roffia: Department of Management, University of Verona, 37129 Verona, Italy
Michele Poffo: VAT Vakuumventile AG, 9469 Haag, Switzerland

JRFM, 2025, vol. 18, issue 3, 1-23

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.

Keywords: corporate frauds; fraud schemes; fraud triangle; fraud pentagon; bribery and corruption; Cressey; fraud polynomial (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
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