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
Scott Edelman writes, “I interviewed George R. R. Martin at a Thai restaurant on Episode 42 of my Eating the Fantastic podcast (MP3), and after I returned home, remembered I’d also interviewed him back in 1993. After digging out the tape, I couldn’t resist incorporating his amusing admission about ‘a fantasy novel I’ve been working […]
Paul from Yog Soggoth Dot Com writes, “To celebrate 19 years of the YSDC web site we’ve released a Limited Edition Wax Cylinder recording of one of our podcast shows on 19 cylinders. Yes, there really is a podcast on it. Fewer than 19 cylinders are available from the set as some people already have […]
Crows in D experiments with the cymatic patterns of bird wings, pairing up the waveforms of audio tones with the wing cycles of crows arranged end to end.
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