White Collar Crime Flashcards
What is white-collar crime?
Crime that involves the use of an individual’s legitimate position of power, influence, or trust for the purpose of illegal gain
3 approaches used to control corporate crime
Voluntary change in corporate attitudes and structure
Strong intervention by the government to force changes in corporate structure
Consumer action
Most common organizational-environment motivating factor for fraud in Albrecht study
Placing too much trust in key employees
Most common personal characteristics among fraudsters in Albrecht study
Living beyond one’s means
How are most frauds detected according to the ACFE’s Occupational Fraud 2024: A Report to the Nations?
By tip
What is organizational crime?
Crime that is committed by businesses and the government
4 categories of occupational crime
Crimes for the benefit of an employing organization
Crimes by officials through exercise of their government-based authority
Crimes by professionals in their capacity as professionals
Crimes by individuals as individuals
What is occupational crime?
Crime that is committed by individuals during their occupation
3 sides of the Fraud Triangle
Perceived non-shareable financial need (motivation or pressure)
Perceived opportunity
Rationalization
Who is responsible for the hypothesis of the Fraud Triangle?
Donald R. Cressey
2 primary strategies to control corporate criminal behavior
Compliance
Deterrence
What is compliance as it relates to combating crime?
Efforts to achieve conformity to the law without having to detect, process, or penalize violators, such as:
Providing economic incentives for voluntary compliance.
Using administrative efforts to control violations before they occur
What is deterrence as it relates to combating crime?
Efforts to achieve conformity to the law through the threat of criminal sanctions
4 ways businesses rationalize illegal conduct according to Silk and Vogel
Compliance with government regulation is too costly.
Regulation is unnecessary.
Damage is so spread among a large number of consumers that, individually, there is little loss.
Violations are caused by economic necessity.
3 variables that motivate occupational fraud according to the Fraud Scale
Situational pressures
Perceived opportunities
Personal integrity
What does it mean for an organization to be criminogenic?
Prone to committing crime
Most common category of occupational fraud according to the ACFE’s Occupational Fraud 2024: A Report to the Nations
Asset misappropriation
Most costly category of occupational fraud according to the ACFE’s Occupational Fraud 2024: A Report to the Nations
Financial statement fraud
