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Repeating myself: https://news.ycombinator.com/item?id=19199343 https://news.ycombinator.com/item?id=19199343 > The classic "control fraud" https://en.wikipedi
by leoc 6y ago
Repeating myself: https://news.ycombinator.com/item?id=19199343 https://news.ycombinator.com/item?id=19199343
> The classic "control fraud" https://en.wikipedia.org/wiki/Control_fraud https://en.wikipedia.org/wiki/Control_fraud strategy is to incentivise your subordinates to maximise revenues while "neglecting" to check that they aren't engaging in fraud to do it. Then you can protest your innocence when the fraud comes to light.
- amelius 6y agoWould control fraud work in a company as big as Amazon? If you're that big, then there's a huge probability of a whistleblower or unhappy ex-employee exposing you.
- rodgerd 6y agoWhen Wells Fargo set incentives that were impossible to meet without defrauding customers, yes, they got caught. They fired thousands of tellers.
- coffeefirst 6y agoAbsolutely. The bigger you are the easier it is to claim plausible deniability for each of the "isolated" incidents. If the executives will even meet the people who they've put in this position, it's easier to lose or just never hear the complaints and red flags.