FraudBytes encourages guest posts. The following post was written by Professor Jason L. Smith, PhD, CPA, who teaches and researches about fraud at the University of Nevada Las Vegas.
A recent article by E.C. Gladstone in the Las Vegas Sun details allegations of taxi cab fraud as drivers are taking tourists on “long hauls” around Sin City in order to meet aggressive fare quotas. Although the author makes no explicit reference to the Fraud Triangle, each of its three elements – pressure, opportunity, and rationalization – are clearly evident in this intriguing description of a serious problem in a city with more than 2,200 taxis serving more than 35 million visitors each year. Below is an analysis of how pressure, opportunity and rationalization all exist in this industry and lead to the fraud detailed in the Las Vegas Sun article.
