The Effect of Fraud Diamond Elements on the Potential of Village Fund Fraud, Blitar District, Indonesia

Abstract

This study aims to determine the effect of pressure, opportunity, rationalization, and capability on the potential of fraudulent village funds in Blitar Regency. This study uses primary data sources by distributing questionnaires to village heads and village officials in Blitar Regency who come from the Ponggok District, Kanigoro District, Nglegok District, and Srengat District. The sample used was 300 respondents who were selected using the cluster random sampling technique. The data analysis technique uses multiple linear regression with the SPSS 23 application program. The hypothesis in this study is that the fraud diamond element consisting of pressure, opportunity, rationalization and capability has a significant positive effect on the potential of village fund fraud. The test results show that pressure has no effect on the potential of village fund fraud, while opportunity, rationalization, and capability have a significant positive effect on the potential of village fund fraud.