““Fraud doesn’t begin with a crime — it begins with a justification.”
And by the time you realise what you’ve done, the red flags have already bled into everything.” - by Connie Paglianiti

What Are the Three Main Causes of Fraud? (And Why So Many Miss the Signs)

By Connie Paglianiti

Let’s get one thing straight — fraud doesn’t just “happen.” It builds. Slowly. Silently. And dangerously. I should know. I used to be the one investigating it…
Until I became the one doing it.

This isn’t easy to say — but it’s the truth. And if my experience can save someone from going down that road, I’ll keep talking about it.

Most people only see the end result — the fall, the headlines, the disgrace. But there’s always a backstory, and it usually begins with what I call “The Big 3.”

🚨 1. Pressure: The Bit No One Talks About

We often think fraud starts with greed.
Wrong. It starts with pressure.

Financial Stress

For me, it was mounting debt, reputational shame, and the fear of losing everything I’d built.

Performance Pressure

The fear of not delivering, of appearing weak, of not being enough — that kind of pressure can eat you alive.

Unexpected Personal Struggles

What people don’t see: the silent battles — grief, shame, betrayal, illness. Pressure doesn’t always come with a siren. Sometimes, it whispers… and that whisper grows into justification.

🔓 2. Opportunity: The Doors Left Wide Open

Fraud doesn’t happen without opportunity. Full stop.

Loose Systems

If there are no checks and balances in place, you’ve already opened the door.

No Oversight

When no one’s watching — and people know it — bad decisions breed fast.

Single Point of Control

If one person has too much access with no accountability, it’s a recipe for disaster. That’s where I found myself. Trusted, unchallenged, and emotionally unravelled.

🧠 3. Rationalisation: The Story We Tell Ourselves

Here’s where it gets real.

Fraud rarely feels like fraud when you’re in it. It feels like:

• “I’ve earned this.”

• “They owe me.”

• “It’s just a loan — I’ll pay it back.”

• “No one will notice.”

I told myself all four.

Looking back, I see the turning point wasn’t the act — it was the self-talk that made it okay.
And that’s what makes it so damn dangerous.

✅ The Truth About Prevention

Fraud prevention isn’t just about systems. It’s about culture.

• Create a culture of honesty — not perfection.

• Close the gaps — even the ones that feel inconvenient.

• Address silent struggles — people don’t always raise a red flag when they’re drowning.

🔚 Final Words

I didn’t just ignore the red flags — I bulldozed past them.
Now? I dedicate my life to helping others see theirs before it’s too late.

Fraud isn’t just about bad people doing bad things.
It’s about good people, under pressure, making one bad decision… and then another… and then another.

So ask yourself:

Where is pressure building in your team, your business, or yourself?
What doors are unlocked?
And what story are you telling yourself to justify not looking?

Because red flags don’t scream.
They whisper.
Until they explode.

Connie Paglianiti is a speaker, author, and second-chance advocate helping organisations spot red flags before they turn into headlines.