how fraud and corruption affect individuals
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Answer:
People affected by fraud against public bodies suffer from social problems such as loss of reputation, feelings of vulnerability, isolation and exposure. Fraud can impact on a victim's mental health, resulting in anxiety, depression and suicide.
In a nutshell, corruption increases inequality, decreases popular accountability and political responsiveness, and thus produces rising frustration and hardship among citizens, who are then more likely to accept (or even demand) hard-handed and illiberal tactics.
corruption creates fiscal distortions and redirects money allocated to income grants, eligibility for housing or pensions and weakens service delivery, it is usually the poor who suffer most. Income inequality has increased in most countries experiencing high levels of corruption.
Main causes for corruption are according to the studies
(1) the size and structure of governments
(2) the democracy and the political system
(3) the quality of institutions
(4) economic freedom/openness of economy
(5) salaries of civil service
(6) press freedom and judiciary
(7) cultural determinants