An All Things Considered segment (MP3) with Chana Joffe-Walt and Alix Spiegel looks at the circumstances that lead to people cheating and committing other frauds. They frame it with the true story of Toby Groves, whose brother had been convicted of fraud, and whose father made him swear a solemn oath to be upstanding in his business dealings. However, Groves found himself committing fraud later, and brought several of his employees in on it.
Typically when we hear about large frauds, we assume the perpetrators were driven by financial incentives. But psychologists and economists say financial incentives don't fully explain it. They're interested in another possible explanation: Human beings commit fraud because human beings like each other.
We like to help each other, especially people we identify with. And when we are helping people, we really don't see what we are doing as unethical.
Lamar Pierce, an associate professor at Washington University in St. Louis, points to the case of emissions testers. Emissions testers are supposed to test whether or not your car is too polluting to stay on the road. If it is, they're supposed to fail you. But in many cases, emissions testers lie.
"Somewhere between 20 percent and 50 percent of cars that should fail are passed — are illicitly passed," Pierce says.
Financial incentives can explain some of that cheating. But Pierce and psychologist Francesca Gino of Harvard Business School say that doesn't fully capture it.
Psychology Of Fraud: Why Good People Do Bad Things
I did an interview with the Changelog podcast (MP3) about my upcoming talk at the O’Reilly Open Source conference in London, explaining how it is that the free and open web became so closed and unfree, but free and open software stayed so very free, and came to dominate the software landscape.
Gabriella Coleman, the anthropologist whose first book, Coding Freedom, explained hacking culture better than any book before or since; and whose second book, Hacker, Hoaxer, Whistleblower, Spy, told the inside story of Anonymous with technical and social brilliance, appeared on the Theory of Everything podcast (MP3) to discuss the ways that free software hackers and […]
These unusual “radio drama staircases” are inside the BBC’s sound studios. When an actor is recorded walking up or down the stairs, the different surfaces (wood, carpet, cement) give the acoustic impression of unique locations for the radio drama. Samuel West shot the image above at BBC’s Maida Vale Studios. Apparently, they are actually functioning […]
When you’ve had a long day and it’s time to unwind, there’s a lot you can do to relax: drink some tea, take a shower or even read a book. But there’s one thing that’s essential to a comfortable night’s rest—and that’s investing in some really good sheets. Enter Bamboo Bed Sheets. These quality sheets retail for $120, but […]
The Avantree Powerhouse 4 Port Fast USB Charging Station brings high quality, high power, and still keeps your work space or home looking neat and organized. The best part about this charger is its capacity. It comes packing 4 USB charging sockets and a powerful 4.5A/22.5W output.. Its smartport technology means you don’t have to worry about frying your battery, either—it […]
With this comprehensive course in App & Game Development for iOS and Android, you’ll be able to take full advantage of this career opportunity without committing to going back to school full time. You’ll learn how to build immersive, interactive games and apps from start to finish using Python, C#, Unity, and HTML—some of the most in-demand programming […]