Emotions play an important role in fraud. How a person manages shame in particular can determine their ability to get work done as well as detect bullying and other tactics around fraud. This chapter takes a deeper look at our innate emotions such as shame, and the unique compass around shame which people use to defend against experiencing shame: attack other, attack self, avoid and withdrawal. Applications of this, with a unique analysis as to its relationship with understanding fraud, are discussed. This chapter also offers a discussion on how organizations can better understand how these subsets of emotion can be used within their organization and how understanding these variables can help combat internal fraud. Because it is a crime, the question of insanity or mental illness is one to explore. Fraud is not a mental illness although it is directly tied to some aspect to law breaking. Psychopathy is explored as a related idea with a focus on subclinical psychopathy. Examples are used throughout to highlight certain aspects of shame and the associated responses.