This chapter describes how ethics, psychology, and fraudulent behavior intersect in the delivery of financial products and services. Moving beyond rule compliance, the chapter explains how cognitive, behavioral, and motivational forces shape financial advisor and client decisions. In addition, the chapter explores how biases can erode a financial advisor’s duty to clients. In this chapter, classic criminological models (e.g., Sutherland’s differential association and Cressey’s Fraud Triangle of pressure–opportunity–rationalization) are presented with capability and neutralization theory to show how otherwise law-abiding professionals sometimes drift into engaging in unethical behavior. The concept of corporate psychopathy is introduced to illustrate how charm, control, and rationalization among senior firm management often defeat weak internal firm controls. The chapter then shows how advisor-side biases, including overconfidence, loss aversion, confirmation, availability, herding, status quo, mental accounting, framing, and optimism, sometimes lead advisors to engage in unethical behavior. On the client side, the chapter profiles how similar biases enhance client vulnerability to fraud. The chapter describes ways to combat persuasion tactics to reduce the occurrence of fraudulent behavior. The chapter concludes by describing how organizational levers, such as tone at the top, realistic targets, whistleblowing, and capability-aware monitoring, can be integrated into a practical fraud-reduction framework.